Experts share tax tips

It’s never too early — or too late — to think about taxes.

With the tax year ending in two days, the Internal Revenue Service and local tax preparers have tips to help reduce taxes and possibly increase refunds.

Clovis and Portales Jackson Hewitt Manager Robin Hardage said mortgage insurance that first time home buyers pay is tax deductible.

And home buyers in 2009 can look forward to a limited-time tax credit when they purchase a home between April 9 and June 30, according to an IRS news release.

Hardage also said tax filers who did not receive government-issued stimulus checks this year may be entitled to a recovery credit on their refunds. She said there isn’t a form to apply for the rebate and advises  filers to inform their tax preparer.

“They can’t just expect it,” she said.

Hardage said companies have until Jan. 31 to mail out W-2 forms, which is a total of wages and salaries paid for the year. But tax filers that don’t have their forms can use their last pay stubs of 2008 to file their income taxes starting on Feb. 15. 

For the remainder of the year here are tax tips from the IRS that could result in less taxes or increase refunds.

• Charitable contribution made no later than Dec. 31 are deductible. Only filers who itemize their deductions can benefit from tax deductible charitable contributions.

• Create a paper trail of charitable contributions. Donations charged with a credit card by Dec. 31 are deductible for 2008, even if the bill is paid in 2009. Checks made in 2008 qualify as long as they were mailed this year.

Cash donations require a bank record or a written statement from the charity which includes the name of the charity, the date of the donation and the amount.

• Tax filers may be able to deduct qualified tuition and enrollment fees  up to $4,000 for themselves or for their dependents.

• Filers who pay real estate taxes can add those to their standard deduction. There is an additional deduction of up to $1,000 for real estate taxes paid.

• Beware of fake e-mails claiming to be from the IRS. The service does not send e-mails about taxes.