Tax deductions

5 last-minute tax deductions and credits (TurboTax)

Today, April 18, 2022, is tax day.

If you’re one of the filers still struggling to get your paperwork in order, be sure to watch the video above. CPA and TurboTax expert Lisa Greene-Lewis reviews some of the most important tax deductions that people often overlook.

Video transcript:

Tracy Byrnes: Alright, as you prepare your tax return, you scramble to do it, we don’t want you leaving money on the table. Don’t miss out on the deductions and credits you deserve. CPA and TurboTax expert Lisa Greene-Lewis is here with us right now to go over the big five that people often overlook. And the first one, oddly, Lisa, on the right, is charitable deductions.

Lisa Greene-Lewis: Yes. And I want to remind people of them because generally you have to itemize deductions for making charitable donations. But as part of the COVID relief, you can now claim up to $300 cash and $300 charitable contributions. And then if you’re married, file jointly, it’s $600.

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Tracy Byrnes: So remember to take that money, even if you take the standard deduction. OK, so Lisa, tell us about contributions to your IRA.

Lisa Greene-Lewis: Yes, so I want to remind people of this one too. So if you’ve filed and see that you may owe money, you can make a contribution to your IRA up until the 2021 tax deadline. And you may be able to deduct this contribution. Just tell your plan provider that this is a 2021 contribution.

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Tracy Byrnes: Right. Even write it in the memo on your check, if you’re still writing checks. Talk about credits for your children.

Lisa Greene-Lewis: Yes, there are so many credits for children that we will talk about the credit for children and dependents a little later. But many people don’t realize they can claim the child care expense credit. So you definitely want to remember that. If you took your kids to daycare or even summer camp, you can take it. The child tax credit has increased from $2,000 to $3,600 for your child under six and up to $3,000 for children aged 6 to 17. So you want to make sure you take them.

Tracy Byrnes: For sure. These children are expensive. You deserve some money on them.

The recovery refund credit, a lot of people forget about that, I guess.

Lisa Greene-Lewis: Yes. Many people don’t realize – so the third stimulus if you haven’t received the full amount you may be eligible for more in the form of a recovery rebate credit. Or if you had a baby in 2021, you may qualify for the full amount. Simply claim the salvage rebate credit.

Tracy Byrnes: And finally, your last tip concerns deductions for owning a home. I could see how it could be credits or deductions that people overlook.

Lisa Greene-Lewis: Yes, there are so many deductions you could get for owning your home. So if you paid points to secure a loan, or if you refinanced, you can deduct those points. Make sure you have your Form 1098 in front of you showing the mortgage interest you paid. And it will also sometimes have the points you paid on it, as well as property taxes if you had property taxes entered.

Tracy Byrnes: These are quite important, and they lower your tax bill, so don’t forget about them.

Lisa, thank you for taking the time to be with us.

Lisa Greene-Lewis: Thank you for hosting me.

Editor’s note: Video produced by Zach Fauld of TheStreets