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Five major deductions and two credits to reduce tax liability

Details: You and your spouse are preparing your first income tax return as a married couple. You want to save some money and prepare the tax return yourself, so you need to gather information on the credits and deductions that are available and decide the best way to file.

Utilize the Library, Internet, and all other resources at your disposal. Prepare a list of five major deductions and two credits that can be used to reduce tax liability. Explain the deduction or credit and who qualifies for it.

Solution Preview

I have summarized 5 tax deductions and 2 tax credits below which would be around 3 pages is double spaced. Here is the link that I highly recommend.

http://taxes.about.com/od/deductionscredits/Deductions_Credits.htm

Please check out the link for reference in the paper or add more information if you like.

Deductions:

1) Additional Standard Deduction Amount got Property Taxes
This is a recent tax deduction established by The Housing Assistance Tax Act of 2008. Homeowners are qualified for this tax deduction regardless of their filing status. This deduction is to be claimed as an additional amount on top of the standard deduction and is calculated as the lower of the following two figures:
a) The amount of real estate property taxes paid during the year to state and local government
b) $1000 for married taxpayers filing a joint tax return

2) Car and Truck Expenses
When a car, truck or other kinds of vehicle are driven for the purposes of business, medical, moving, relocating, and charitable service, the cost is ...

Solution Summary

650+ words with a reference gives and explains 5 deductions and 2 possible credits for a couple preparing their first income tax return.

$2.19