How to Add Last Minute Deductions to a Return

Adding a last minute deduction to your income tax return could mean the difference in getting a refund instead of having to pay Uncle Sam more of your hard earned money. Thinking ahead before the year ends can wind up saving you, and it's not too late to add a deduction or two just before you file. Take the time to go over your tax return to make sure you're deducting all you can.

Difficulty: Moderately Easy

Instructions

1. Make charitable contributions before January 1. If you use your credit card, you can deduct the contribution in this year's returns and pay the contribution at the beginning of next year.

2. Use your credit card to pay end of year expenses that you can itemize like business, medical, rental or other itemized expenses. Again, if they are paid on the card before January 1, you'll get the deduction benefit this year, and be able to pay for the items on next year's billing cycle.

3. Keep track of all your medical expenses. They can be deducted when exceeding 7.5% of your adjusted gross income. Expenses having to do with health include treatment programs, dental expenses, eye care, some prescriptions and many more.

4. Check to make sure you've deducted your personal property taxes paid during the year. If you own property you'll want to take advantage of this deduction.

5. Pay your January mortgage several weeks in advance if you want to get it put on this year's Form 1096 for interest payments. This could benefit your deductions this year.

6. Deduct casualty and theft losses to the amount that they exceed 10% of your adjusted gross income. Losses due to auto accidents, fires, floods, storms or even thefts from a home or vehicle can be deducted.

7. Double check that you have deducted any child tax credits, education credits or dependency credits that are due to you.

Tips & Warnings

• Even if you don't itemized deductions there are still last minute additions you should look for like student and medical expenses that can be paid by the end of the year.
• Schedule any medical or dental treatments needed before the end of the year if you want to increase your medical deduction for this year's taxes.
• Don't make up deductions or over estimate them. You may be tempted to add a deduction that seems believable, but remember the IRS will be reviewing your return and can audit you at any time.
• Using your credit card to pay bills and deductible expenses at the end of the year is only a good idea if you have the means to pay them off in the next billing cycle.