Does Your Tax Write Off To-Do List Include An Auto Title Loan?

As we have said goodbye to 2012 we still look back as we start working on our income taxes and search for viable write off to help us get more of a refund or save ourselves from paying too much. Charitable giving has long been a part of tax write-offs and although we cannot count what we have donated in the past few weeks, we can certainly look forward to what we will be able to write-off once 2013 comes to a close. Here are some things to think about:

*Got Donations? Make sure you get dated receipts for all of your donations. Income taxes go off calendar years so if your contribution isn’t dated for the tax year you are claiming; it’s not going to count. Whether it’s a tangible donation or one made by credit card or check, you need that receipt to show that you made your donation in the tax calendar year.

Donations made by credit card are deductible for the tax year even if you don’t make the payment until the following year. A contribution made by check is always deductible for the current filing year if mailed in by the last day of December of that year, says the Internal Revenue Service. If you were generous to a friend or family member, unfortunately that does not count as a charitable donation and is not eligible to be written off on your taxes.

*Max out that IRA, Roth Ira or 401K! Who couldn’t use a little more cushion in their retirement fund? You can do so by maxing out your annual employment contribution during the filing year. The max contribution for 2012 is $ 17,000 but will go up to $ 17,500 this year. If you are 50 or over and want to do some “catching up” you can contribute extra depending on the filing year.

*Moving Donations- Are you moving and aren’t taking that extra car, boat or RV with you? If so and you want to donate to a charitable organization, keep in mind that the amount you will write off will be based on Fair Market Value at the time the charity sells the car, boat or trailer. Don’t get this confused with what you would ask for the vehicle were you to sell it yourself. This applies to deductions with a value of $ 500 or more.

*Tax-deductible interest payments- At one point and time taxpayers used to be able to write off credit card interest until the Tax Reform of 1986 came into play. Nowadays, the IRS is very clear about what types of interest you can write off in an effort to lower your tax payment or get more back on that eagerly awaited tax return. Here is what you can write off:

-Interest paid on home loans which includes mortgages and home equity lines of credit.

-Interest paid on outstanding students loans. That is, interest payments that are actually being made. Interest that is accrued but not paid off doesn’t count. -Interest paid when having borrowed money to purchase an investment property.

-Interest paid on credit cards when used only for business purposes. This doesn’t mean using a company credit card for personal uses and then writing it off.

Unfortunately, interest paid on any other type of credit card or loan, including auto loans, auto title loans, and payday loans, does not count as interest you can write off on your taxes. If you decide to take out a car title loan and think you are going to get some of that interest back on your tax return, think again.

Texas Auto Title Loan is a great option for those who need fast money. TATL is state regulated following all rules and regulations. Visit http://www.texasautotitleloan.com to find out more on title loans.