Diverse tax breaks sometimes forgotten

As tax season approaches, many Americans search for useful accounting tips and strategies to help them avoid paying more than necessary to the Internal Revenue Service.

A number of tax breaks are available to those engaged in retirement planning and long-term saving. Tax expert Barbara Weltman suggests that Americans re-examine these accounts, because the stagnant wages that have characterized recent years may make some who did not previously qualify due to income limitations eligible for contributions.

Most day traders given the option will likely prefer to deduct state sales taxes on their returns, rather than income. Other categories of deductions include education, which includes childrens' education or one's own. This includes graduate school and continuing education costs, in some cases. Even taxpayers who do not itemize their deductions can benefit from a $4,000 deduction for tuition and fees.

Taxpayers who wish to deduct their health insurance should remember to include expenses such as glasses, braces, physical therapy, and medically necessary home improvements, such as air conditioning necessary for someone with allergies or breathing problems.

Those who find the process difficult, or who wish to have the lowest possible taxable income, may wish to consider that payment for tax preparation is itself deductible, making professional tax accounting assistance even more advantageous.

Some of these tax breaks are on the verge of disappearing, though they could be renewed in the future. Charitable gifts are generally tax-deductible, but so is volunteer time, which some may forget. Volunteers who go on trips to deliver supplies or perform other tasks may be able to claim a deduction dependent on the distance travelled.