There are still a few things you can do to reduce your 2010 tax liability. Don’t forget about these deductions that can make a big difference:
- Make the most of charitable donations. Cash, credit card charges, and material goods or services can be claimed as a deduction as long as you can substantiate the deduction with receipts.
- Child care credit. Generally speaking. child care up to $6,000 for two or more children could be covered as long as you keep clear records.
- Home Energy Efficiency Improvements. Credits are available for energy efficient improvement items such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment. Consumers can claim up to 30% of the cost, up to $1500 of such improvements.
- Residential renewable energy tax credits. For certain “green” improvements, such as solar energy, consumers can get a tax credit up to 30% of the cost of the improvements.
- Automobile tax credits. There are credits available to consumers who purchase a hybrid gas-electric or alternative fuel vehicle before the end of 2010.
- Relocating for work purposes. If you meet certain criteria, you may be able to deduct some of your relocation expenses if you move to be closer to work. The distance test requires that your new commute to work is at least 50 miles closer than your old commute. The second test requires you to prove that you actually did move for work purposes.