Posted On March 29, 2013

Avoid or satisfy a tax debt by filing your 2012 tax return

For Las Vegas residents, and indeed for every American, April 15 can be a daunting date. It is estimated that Americans spend over six billion hours per year in preparing and filing their taxes. It is possible to avoid some of the stress of accrued tax debt by following a few simple guidelines to ensure your tax form is completed correctly, and on time.

Taking advantage of so-called “boomerang breaks” is a good way to take advantage of credits you might not know you have to help tackle tax debt. For example, the government offers a $500 credit towards home improvements that increase your home’s energy efficiency, and certain new laws have resurrected both state and local sales-tax deductions. However, it is important to note the restrictions on these credits.

While it is not possible for every American to claim their medical expenses, there will be at least a few Las Vegas residents who will meet the minimum 7.5 percent of their total gross adjusted income required under the Tax Code. If your income was reduced, for example, or you had an unusually high number of medical bills in the calendar year, it is possible you will meet these criteria and be able to take advantage of the deductible. Bills paid on behalf of children under 27 years of age are also counted toward this minimum.

Certain new provisions also allow homeowners to write off mortgage premiums in addition to their mortgage and property taxes, assuming they meet specific requirements related to gross income. Ultimately, it is in every Las Vegas resident’s best interest to stay informed and up-to-date about the latest available tax credits and deductions that may apply to you and your family. April 15 does not have to mean more tax debt, and some may take comfort in knowing that help is available to address these important income tax issues. Those that put in the effort up front are likely in a better position to avoid claims for back taxes that could result in tax litigation.

Source: DailyFinance.com, “Tips to Help You Finish Your 2012 Tax Return Now,” Sandra Block, March 20, 2013