If you spend more than 10% of your adjusted gross income on medical expenses, such as insurance (but not your pre-tax premiums), prescriptions, other out-of-pocket expenses, and mileage to and from medical facilities, then you may deduct the amount that exceeds that figure. Keep in mind, you must itemize to claim medical deductions. Call us today, let us take away the guess work for this valuable but rarely used credit. The Affordable Care Act,better known as “Obama Care” can impact your tax liability as well.  We are here to assist you with understanding your potential tax consequences.

If you choose to itemize instead of the standard deduction, the IRS gives a break to those who are trying to get out of the unemployment line. If you are applying for jobs in the same line of work which you were previously employed, you can deduct the cost of printing and mailing your resume. You can also deduct any fees incurred from employment agencies. Travelling expenses can be deducted as well: parking fees, tolls roads, and gas (56 cents per mile driven). Keep in mind that these deductions ARE subject to the 2% limit, meaning that you can only claim the expenses that are more than 2% of your adjusted gross income. However, other miscellaneous expenses, (see IRS Publication 529) are factored into this as well. If you are taking the standard deduction and not itemizing, you can still qualify for a deduction for any expenses from moving to a new residence for your new job. To qualify, your new job must be at least 50 miles further from your home than your old job. If the job is your first job, then it must be at least 50 miles from your current home. This could include the costs of renting a truck or hiring a moving company. Additionally, 23 cents per mile driven can be deducted. Hotels or other forms of lodging can be deducted as well, and the cost of a month of storage space for belongings. For more info, see IRS Publications 521-529.

In another effort to curb identity theft, only the last four digits of the social security number will be on the W2’s for employees. Of course, the IRS continues to receive the complete number. These are just some of important news that you will want to know.