Thanks to the American Taxpayer Relief Act of 2012 (ATRA), a slew of expiring tax breaks for individuals have been extended, many of them retroactive to Jan. 1, 2012. By taking advantage of these changes and other existing loopholes in the tax law, you can save yourself hundreds or even thousands of tax dollars on your 2012 return.
In a year in which we elected the president of the United States, 33 senators and all 465 members of the House of Representatives, the most important “ballots” may not have been filled yet.
Strategy: Make this an “election year.” The choices you make on your 2012 federal tax return can have a major impact on your overall tax liability. In fact, your tax return elections could make the difference between a sizable refund and paying more money to Uncle Sam.
Here are five prime candidates.
1. Compare in-state taxes. Instead of deducting state income tax as usual, you can elect to write off the state...(register to read more)