Tax law can be complex. There's much to know to be sure you're doing all you can to get what you deserve. Here are some tips and possible deductions to get you started. WHEN IN DOUBT, BRING IT IN!
Child and Dependent Care Credit
Child/Additional Child Tax Credit
Earned Income Tax Credit
Retirement Savers Credit
Residential Energy Efficient Property
Donations and out-of-pocket expenses paid to qualified charitable organizations. See our Charitable Deductions page for more information.
Arizona allows 100% of medical expenses when you itemize deductions. For a federal tax deduction you must have medical expenses exceeding 7.5% of your adjusted gross income. Qualified medical expenses include mileage, certain insurance premiums, vision and dental care, copays for prescription drugs, medical equipment. See our Medical Deductions page for more examples.
State and local taxes paid, sales tax paid on all vehicles and homes, personal property tax, foreign taxes (not foreign real estate taxes), real estate/property tax, vehicle license tax on auto registration (go to www.servicearizona.com) There is a cap on the aggregate of these deductions; meaning, all state and local taxes, income, and property taxes together may not exceed $10,000 ($5,000 for married taxpayers filing separately).
Form 1098 home mortgage interest and points paid on qualified residence. If you refinanced bring in settlement statements. Mortgage interest paid to another. Seller financed or recreational vehicles: need name and address, if paid to an individual need a social security number or EIN. Investment interest expense. For tax years 2020 through 2025, there is no deduction available for interest on home equity indebtedness.
Points paid on a home mortgage are usually deductible as interest.
One of the most powerful tax shelters available is a qualified retirement plan. Within certain limits, contributions to fund the plan are immediately tax deductible, plan investment earnings are tax deferred, and plan participants do not have to pay income taxes on benefits until they receive their distributions.
Expenses incurred by teachers, instructors, counselors, principals and aides for educating students K-12, up to $250.
Beginning in 2018, the moving expense deduction is only available to certain military personnel.
This list is far from exhaustive.
Call today to set up a time to discuss your specific situation and needs.
Bring documentation for all sources of income.
If you’re not sure whether income is taxable, bring it in and we’ll discuss it.
W-2s for wages earned from employers
W-2s for disability income
W-2Gs for gambling winnings
1099 for retirement income, including pensions, IRAs and annuities
1099-Int for interest earned from investments and bank accounts
1099-Div for dividends earned on investments
1099-G for 2012 state tax refunds or unemployment
1099-SSA for Social Security benefits
1099-Misc for business/rental/royalties/etc.
Include all other income even if you did not receive a 1099-Misc
1099-B for stock sales and broker accounts with date of purchase and cost basis
Bad Debt (rules apply)
Consolidated 1099s from brokerage accounts including amended or substitute 1099s
1099-S for sale of real estate, including settlement statement
Any income from sales of business/rental/investment assets
K-1s for investments in partnerships, S-corporations, trusts, royalties
Rental Real Estate Income
Total of all alimony received
Forms 1099-C and 1099-A cancellation of debt
Any other income!
TOOGOOD'S TAX AND ACCOUNTING, PLLC
595 SOUTH MAIN STREET
PO BOX 2999
FLORENCE, AZ 85132