- Due to the CARES Act, a one time $300 deduction will be allowed as an adjustment to income for donations made to charities on your 2020 tax return. The donation must be made by cash, check or credit card. Donated items will not qualify. Please be sure to include proof of your contributions with your tax documents. More information can be found on the IRS website.
- Maximize your tax deductions by contributing more to your IRA or your retirement plan, like a 401K, at work. Every dollar you save reduces your taxable income and saves tax dollars.
- College tuition may qualify as a deduction or a tax credit on your return. Don't forget to deduct student loan interest paid.
- Child care deductions of up to $3,000 per child, up to $6,000 per tax return, are allowed for your dependent under the age of 13.
- Don't forget sales tax on that new car you purchased! That could help increase your itemized deductions.
- New Jersey still allows a deduction for medical expenses. Please track your medical co-pays and out of pocket expenses. Don't forget to track those miles to the doctors and physical therapy!
- Teachers - don't forget your $250 deduction for educators for all supplies and special equipment you purchased to do your job!
- Special Rules allow taxpayers to net gambling
winnings and looses before reporting. See guide:
Gambling Winnings and Losses.pdf
- IRS has created a home page for EITC: http://www.eitc.irs.gov/
- Charitable Donation Guide: Salvation Army Guide.pdf