Maximize your tax deductionsMake sure you're getting all the refund your entitled to.NEW YORK (CNNMoney.com) -- Almost 70 percent of filers expect to receive a tax refund this year, according to the National Retail Federation. Of that group, one-third plan to use their tax refunds to pay off debts. More than one-third will put their tax refunds into savings. Here are some deductions you may have overlooked. Think energy efficiency If you put in new windows or added insulation to your house last year, you're in for a tax break. You'll be able to claim a 10 percent credit up to $500 for insulation and heat-reducing metal roofs and up to $200 for energy efficient windows. If you're more ambitious, you can get an annual credit worth up to $2,000, if you install solar panels or water heaters. Save more for retirement Kill two birds with one stone by opening an IRA to increase your savings for retirement. The other advantage is to shelter some income from Uncle Sam. The maximum IRA contribution for people under fifty is $4,000 and up to $5,000 if you're fifty years or older. Get your phone tax rebate If you own a phone (including a cell phone) you're entitled to at least $30 back from Uncle Sam. The one-time refund is payback for an old telephone excise tax the government has been making people pay for a century. You can get up to $60 for families of four or more. Claiming this standard credit will be much easier than digging up your phone bills for the past three-and-a-half years to figure out exactly how much you are owed. Don't forget your education spending If you contribute to a 529 plan to save for your child's education, you may be in for a big fat tax deduction because some states allow you to deduct your contributions. See if your state is one of them at www.savingforcollege.com. If you're already paying tuition, you're in for another big tax break. Qualified higher-education expenses are deductible for up to $4,000 in tuition and fees if your adjusted gross income is $65,000 or less or $130,000 for joint filers. If your income is higher, that is, $80,000 or less for single filers, or $160,000 or less for married couples, you can deduct up to $2,000. ---------------------------------- Too deep in debt? Where to turn for help Young investors, car renters ask for advice Gerri's Mailbox: Got questions about your money? We want to hear them! Send e-mails to toptips@cnn.com or click here - each week, we'll answer questions on CNN, Headline News and CNNMoney.com. |
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