Tax scams take many different forms. Recently, the most common scams are phone calls and emails from thieves who pretend to be from the IRS. They use the IRS name, logo or a fake website to try to steal your money. They may try to steal your identity too. Here are several tips from the IRS to help you avoid being a victim of these tax scams:

The real IRS will not:

• Initiate contact with you by phone, email, text or social media to ask for your personal or financial information.
• Call you and demand immediate payment. The IRS will not call about taxes you owe without first mailing you a bill.
• Require that you pay your taxes a certain way. For example, telling you to pay with a prepaid debit card.

Be wary if you get a phone call from someone who claims to be from the IRS and demands that you pay immediately. Here are some steps you can take to avoid and stop these scams.

If you don’t owe taxes or have no reason to think that you do:

• Contact the Treasury Inspector General for Tax Administration. Use TIGTA’s “IRS Impersonation Scam Reporting” web page to report the incident.
• You should also report it to the Federal Trade Commission. Use the “FTC Complaint Assistant” on FTC.gov. Please add “IRS Telephone Scam” to the comments of your report.

If you think you may owe taxes:

• Ask for a call back number and an employee badge number.
• Call the IRS at 800-829-1040. IRS employees can help you.

In most cases, an IRS phishing scam is an unsolicited, bogus email that claims to come from the IRS. They often use fake refunds, phony tax bills, or threats of an audit. Some emails link to sham websites that look real.  The scammers’ goal is to lure victims to give up their personal and financial information. If they get what they’re after, they use it to steal a victim’s money and their identity.

If you get a ‘phishing’ email, the IRS offers this advice:

• Don’t reply to the message.
• Don’t give out your personal or financial information.
• Forward the email to phishing@irs.gov. Then delete it.
• Don’t open any attachments or click on any links. They may have malicious code that will infect your computer.

Stay alert to scams that use the IRS as a lure. More information on how to report phishing or phone scams is available on IRS.gov.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Source : http://www.irs.gov/uac/Stay-Vigilant-Against-Bogus-IRS-Phone-Calls-and-Emails

When you sell a capital asset the sale results in a capital gain or loss. A capital asset includes most property you own for personal use or own as an investment. Here are 10 facts that you should know about capital gains and losses:

1. Capital Assets.  Capital assets include property such as your home or car, as well as investment property, such as stocks and bonds.
2. Gains and Losses.  A capital gain or loss is the difference between your basis and the amount you get when you sell an asset. Your basis is usually what you paid for the asset.
3. Net Investment Income Tax.  You must include all capital gains in your income and you may be subject to the Net Investment Income Tax. This tax applies to certain net investment income of individuals, estates and trusts that have income above statutory threshold amounts. The rate of this tax is 3.8 percent. For details visit IRS.gov.
4. Deductible Losses.  You can deduct capital losses on the sale of investment property. You cannot deduct losses on the sale of property that you hold for personal use.
5. Long and Short Term.  Capital gains and losses are either long-term or short-term, depending on how long you held the property. If you held the property for more than one year, your gain or loss is long-term. If you held it one year or less, the gain or loss is short-term.
6. Net Capital Gain.  If your long-term gains are more than your long-term losses, the difference between the two is a net long-term capital gain. If your net long-term capital gain is more than your net short-term capital loss, you have a net capital gain.
7. Tax Rate.  The capital gains tax rate usually depends on your income. The maximum net capital gain tax rate is 20 percent. However, for most taxpayers a zero or 15 percent rate will apply. A 25 or 28 percent tax rate can also apply to certain types of net capital gains.
8. Limit on Losses.  If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. This loss is limited to $3,000 per year, or $1,500 if you are married and file a separate return.
9. Carryover Losses.  If your total net capital loss is more than the limit you can deduct, you can carry over the losses you are not able to deduct to next year’s tax return. You will treat those losses as if they happened in that next year.
10. Forms to File.  You often will need to file Form 8949, Sales and Other Dispositions of Capital Assets, with your federal tax return to report your gains and losses. You also need to file Schedule D, Capital Gains and Losses with your tax return.

For more information about this topic, see the Schedule D instructions and Publication 550, Investment Income and Expenses. You can visit IRS.gov to view, download or print any tax product you need right away.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Source : http://www.irs.gov/uac/Ten-Facts-That-You-Should-Know-about-Capital-Gains-and-Losses

The best way to get your tax refund is by direct deposit. Here are five good reasons to join the 84 million taxpayers who chose direct deposit last year.

IRS Direct Deposit:

1. Is Fast.  The fastest way to get your refund is to electronically file your federal tax return and use direct deposit. Use IRS Free File to prepare and e-file your federal return for free.
2. Is Convenient.  With direct deposit, your refund goes directly into your bank account. You won’t have to wait for your check to come in the mail. There’s no need to make a trip to the bank to deposit a check.
3. Is Secure.  Since your refund goes directly into your account, there’s no risk of having your refund check stolen or lost in the mail.
4. Is Easy.  Choosing direct deposit is easy. When you e-file, you can follow the instructions in the tax software. If you file a paper return, just follow your tax form instructions. Make sure that you enter the correct bank account and routing number.
5. Has Options.  You can split your refund into several financial accounts. These include checking, savings and certain retirement, health and education accounts. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to split your refund between up to three accounts. Don’t use Form 8888 to designate part of your refund to pay your tax preparer.

You should deposit your refund directly into accounts in your own name, your spouse’s name or both. Don’t deposit it in accounts owned by others. Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Check with your bank for their direct deposit requirements.

The IRS has set new limits that allow for no more than three electronic direct deposit refunds into a single financial account or pre-paid debit card. Taxpayers who exceed the limit will receive an IRS notice and a paper refund.

Helpful tips about direct deposit and the split refund option are available in Publication 17, Your Federal Income Tax. You can view, download and print tax products on IRS.gov/forms anytime.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Source : http://www.irs.gov/uac/Five-Good-Reasons-Why-You-Should-Choose-Direct-Deposit

If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits. These IRS tips will help you determine whether or not you need to pay taxes on your benefits. They also explain the best way to file your tax return.

• Form SSA-1099.  If you received Social Security in 2014, you should receive a Form SSA-1099, Social Security Benefit Statement, showing the amount of your benefits.
• Only Social Security.  If Social Security was your only income in 2014, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources you may have to pay taxes on some of your benefits.
• Free File.  Use IRS Free File to prepare and e-file your tax return for free. If you earned $60,000 or less, you can use brand-name software. The software does the math for you and helps avoid mistakes. If you made more than $60,000, you can use Free File Fillable Forms. This option uses electronic versions of IRS paper forms. It is best for people who are used to doing their own taxes. Free File is available only on IRS.gov/freefile.
• Interactive Tax Assistant.  The IRS has a helpful tool that you can use to see if any of your benefits are taxable. Visit IRS.gov and use the Interactive Tax Assistant.
• Tax Formula.  Here’s a quick way to find out if you must pay taxes on your Social Security benefits: Add one-half of your Social Security to all your other income, including tax-exempt interest. Then compare the total to the base amount for your filing status. If your total is more than the base amount, some of your benefits may be taxable.
• Base Amounts.  The three base amounts are:
• • $25,000 – if you are single, head of household, qualifying widow or widower with a dependent child or married filing separately and lived apart from your spouse for all of 2014
  • $32,000 – if you are married filing jointly
  • $0 – if you are married filing separately and lived with your spouse at any time during the year

For more information on this topic visit IRS.gov.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Source : http://www.irs.gov/uac/Social-Security-Benefits-and-Your-Taxes1

The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are six things you should know about the credit.

1. Amount.  The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return.
2. Additional Child Tax Credit.  If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the Additional Child Tax Credit.
3. Qualifications.  For this credit, a qualifying child must pass several tests:
   • Age test.  The child must have been under age 17 at the end of 2014.
   • Relationship test.  The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. The child may be a descendant of any of these individuals. A qualifying child could also include your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
   • Support test.  The child must not have provided more than half of their own support for the year.
   • Dependent test.  The child must be a dependent that you claim on your federal tax return.
   • Joint return test.  The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
   • Citizenship test.  The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
   • Residence test.  In most cases, the child must have lived with you for more than half of 2014.
4. Limitations.  The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate your credit depending on your filing status and income.
5. Schedule 8812.  If you qualify to claim the Child Tax Credit, make sure to check whether you must complete and attach Schedule 8812, Child Tax Credit, with your tax return. For example, if you claim a credit for a child with an Individual Taxpayer Identification Number, you must complete Part I of Schedule 8812. If you qualify to claim the Additional Child Tax Credit, you must complete and attach Schedule 8812. Visit IRS.gov to view, download or print IRS tax forms anytime.
6. IRS E-file.  Electronic filing is the best way to file your tax return. IRS E-file is the safe, accurate and easiest way to file. If you use IRS Free File, you can prepare and e-file your taxes for free. Go to IRS.gov/filing and review your options.

You can use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Source : http://www.irs.gov/uac/Top-Six-Things-You-Should-Know-about-the-Child-Tax-Credit

A spate of fraudulent state income tax returns filed using TurboTax’s online software has unnerved consumers this filing season. But con artists also continue to use more traditional means to try to separate taxpayers from their money, like harassing them on the telephone.

The Internal Revenue Service has posted repeated warnings about tax phone frauds, in which criminals call consumers pretending to be agents from the I.R.S. The impostors claim the taxpayer owes back taxes, then threaten arrest or legal action, unless the individual makes a payment quickly. Sometimes victims are urged to wire money, but more commonly they are directed to obtain a prepaid money card at a retailer and provide the number to the caller.

The Federal Trade Commission, which investigates consumer fraud, says complaints about I.R.S. impostor fraud have spiked over the last year.

“The callers are aggressive, they are relentless and they are ruthless,” said J. Russell George, Treasury inspector general for tax administration, in a statement. His office, which oversees the I.R.S., said it had received reports of about 290,000 calls since October 2013, and nearly 3,000 victims had been cheated out of more than $14 million.

Garrett Gregory, a former senior lawyer with the I.R.S. who now has a tax practice in Dallas, said the calls were pervasive and that his office heard once or twice a week from clients who were concerned about getting such calls. Most people know to “laugh and hang up,” he said, but the calls still can be unnerving. His own father received such a call a month ago, he said.

The crooks aren’t particularly discriminating in their choice of targets: The Connecticut state tax commissioner received a call this month, according to a report in The Hartford Courant. And a lawyer for the Federal Trade Commission wrote this month on the agency’s blog that she had received such a call on her home answering machine. “Hello, we have been trying to reach you,” the message said. “This call is officially a final notice from the I.R.S., Internal Revenue Service. The reason of this call is to inform you that I.R.S. is filing a lawsuit against you.”

The callers strive to appear authentic; they may use robocalling technology that shows “I.R.S.” on your caller identification screen. They may know part or all of your Social Security number and they may provide a fake I.R.S. “badge” number. In some cases, follow-up calls may come, supposedly from local police or prosecutors.

But the telephone call itself, experts say, is the first tipoff that the call is bogus. The I.R.S. does not initiate contact through phone or email, but rather sends written correspondence through the United States mail. “The I.R.S. does not call people,” Mr. Gregory said.

Here are some questions about tax fraud schemes:

■ What should I do if a caller says they are with the I.R.S?

Don’t provide any personal information and don’t engage with the caller (other than, perhaps, to ask their name, the F.T.C. advises, so you can include it in a complaint). Then, hang up. You can report the incident to the Treasury inspector general for tax administration by filling out an online form.

When you file the complaint, you will be asked to choose a five-digit PIN. If you are contacted about the incident, you should ask for the PIN, so you can be sure you are speaking to a legitimate agent.

You can also file a complaint with the F.T.C. on its website.

■ What should I do if I get an email that indicates it is from the I.R.S.?

The agency says it generally does not initiate contact with taxpayers by email, so such messages are most likely “phishing” attempts to try to obtain sensitive information, like user names and passwords. (This month, for instance, the agency warned of “bogus” emails asking tax professionals to update information like their electronic filing identification numbers.) Don’t respond to such email or click on any attachments, the agency advises. Rather, forward it to phishing@irs.gov, then delete it.

■ What if I think I may actually owe taxes?

If you are concerned, you should contact the I.R.S. directly at 800-829-1040.

Email: yourmoneyadviser@nytimes.com

Make the most of your money. Every Monday get articles about retirement, saving for college, investing, new online financial services and much more. Sign up for the Your Money newsletter here.

Source: http://www.nytimes.com/2015/02/27/your-money/call-from-the-irs-hang-up-its-a-fraud.html?ref=topics

In addition, a deferred tax liability arises because of differences in the way net income is calculated for financial purposes and the way it’s calculated for income tax purposes. The most common book/tax difference is for depreciation, where tax rules may allow for accelerated depreciation methods that are not allowed for financial reporting.

Accounting for deferred tax liabilities is a result of adherence to the matching principle of accounting that states that expenses, like taxes, must be accounted for in the period for which they apply, rather than the period where cash is used to pay them.

Source: http://www.investopedia.com/video/play/deferred-tax-liability/

You’ve been paying a professional – a CPA, attorney, enrolled agent or other paid preparer – to prepare your tax return. Some of your friends use tax software, an online product or an app (in many instances you can now combine these, changing from your desktop to a mobile app and back at your option). Is one better than the other? There’s no single answer for every taxpayer. Choose the tax preparation method that suits your situation. Here are some of the factors to consider in making your choice.

DECIDING POINT: COMPLEXITY OF TAX SITUATION

As a general rule, the more complex your tax situation, the more compelling it is for you to bring in a tax professional. What makes complexity? If you have any of the following situations:

• You own a business, including a sideline business. This is because there are many complex rules and various tax elections that you may want to discuss with a tax pro. For example, if your business purchased equipment, you have several ways to write off the cost; the best way to do this depends on your current tax situation as well as your prospects for the future. You can, of course, handle complex situations with appropriate tax software (e.g., TurboTax Home and Business enables you to prepare a Schedule C for your sole proprietorship), but you won’t get personal advice.
• You had a major life event this year. For example, if you sold a business, went through a divorce, sold a home or had any other major life change, a tax preparer can alert you to the rules that you now have to handle.
• Extensive securities transactions. Software can automatically input the results from Form 1099-B, which reports securities transactions. However, you may need to work with a tax pro to make sure you have all the information required for your return (e.g., your tax basis); it may not all be on the 1099.
• You want to itemize. Again, software enables you to put all your information into the mix; a tax preparer can provide advice about legitimate deductible expenses, the substantiation you need and other matters to help you optimize your deductions while avoiding problems with the IRS.

DECIDING POINT: YOUR TAX PROFICIENCY

For some people, the very idea of numbers, taxes and the process of preparing and filing a return seems daunting. For others, taxes have become a routine chore that needs to be done each year.

If you’ve been doing your taxes year after year and not much has changed in your financial or personal situation, you’ll likely be more than able to handle your 2014 tax return. Just familiarize yourself with the new entries on the return related to the Affordable Care Act (which can be found in the instructions to the return).

If you’ve never done a return before, decide whether you’re up to the task. Recognize that you don’t have to be a math wizard because software or online preparation sites do calculations for you. And you don’t have to be a tax expert because you’ll be prompted to supply needed information to complete your return.

DECIDING POINT: YOUR SCHEDULE

Time is always an important factor in deciding whether to do your return yourself or hire a preparer. Either way, you’ll spend the same amount of time gathering the documentation needed to prepare the return: information returns you’ve received (Forms W-2, 1098, and Schedule K-1s), your canceled checks for itemized deductions, logs and other substantiation for certain expenses. (See 10 Steps To Tax Preparation.)

So, the difference is in the time spent doing the actual return. Depending on your situation, that could be modest (an hour or so), or lengthy (6 hours or more). If you don’t have this time, then using a preparer is the better choice.

DECIDING POINT: COST

Cost may influence your decision about who prepares your return. According to the National Society of Accountants, the average fee charged this year for a return that does not include itemized deductions is $159, or $273 for a return with itemized deductions. Fees may be higher or lower, depending on the region of the country.

You can do your own return for little or nothing, and not just with pen and paper, by hand. If your adjusted gross income is less than $60,000, you can use FreeFile, which is the IRS’s free service to prepare your return online and submit it electronically at no cost. (For more on FreeFile, read How do I use the IRS Free File tax forms?)

If your income precludes you from using FreeFile, you can buy software or use an online solution; prices for a federal return start around $20. If you itemize, the amount you spend this year will be an itemized deduction on your 2015 return. (For some free filing options, read Top Software To Prepare Taxes Free By April 2015.)

THE BOTTOM LINE

Hiring a tax preparer or using a software package or online tax site can both work well, depending on your tax situation and your comfort with the process.

If you want to use tax software, recognize that there have occasionally been issues with certain products – for example, some fraudulent state tax returns were filed using TurboTax earlier this year, leading to a suspension of state filings for 24 hours and inducing Congress to investigate the matter. (Tax-related identity theft is an issue that everyone needs to be aware of, regardless of the method you use to prepare your return.)

If you opt to use a paid preparer, make sure to find a reliable one. The IRS has tips to help you in this task as well as a tax return preparer directory listing those with valid IRS Preparer Tax Identification Numbers (PTINs).

Either way, the responsibility to file a tax return is on you. Good luck.

Source: http://www.investopedia.com/articles/personal-finance/022515/tax-preparer-vs-software-how-choose.asp

• hires a qualified veteran who begins his or her employment on or after January 1, 2014, but before January 1, 2016; and
• employs the qualified veteran in New York State for one year or more for at least 35 hours each week.

You may claim the credit in the tax year in which the qualified veteran completes one year of employment with you. The credit may be claimed for tax years beginning on or after January 1, 2015, but before January 1, 2017.

How much is the credit?

To claim the credit, the employer must have the veteran certify that he or she meets the requirements of a qualified veteran on form DTF-75.

Source: http://taxfoundation.org/article/2014-tax-brackets

What’s new this tax season? In a word: Obamacare. That’s the answer given by many tax professionals.

People who overcame the challenges of Healthcare.gov and succeeded in buying health insurance under the Affordable Care Act last year now face a new set of hurdles in the form of daunting tax forms. So do business owners who offer coverage to employees under the law’s Small Business HealthOptions Program. But the good news for both is that they may receive a tax credit that reduces taxes dollar for dollar.

Barbara Weltman, a lawyer in Vero Beach, Fla., and the author of “J.K. Lasser’s 1001 Deductions & Tax Breaks 2015,” said it could be a big credit if you qualify for it, but warned, “It is not that easy to qualify.”

For qualifying business owners the credit for 2014 is 50 percent, up from 35 percent in 2013. Individuals who bought insurance through an exchange and had household income between $11,490 and $45,960 last year may be able to claim a tax credit on the new Form 8962.

Most people estimated their income when they bought their coverage and received an advance on the credit in the form of payments directly to their insurance company. Now that the income numbers are real, taxpayers may get a refund — or may owe the government more money.

“It is extremely complicated,” Ms. Weltman said, referring to the form and the instructions for filling it out. She recommended using tax software with interview questions rather than trying to fill out the form by hand based on the official instructions.

People with incomes below $60,000 qualify for the “Free File” program, in which the Internal Revenue Service teams up with various software providers. Information is available at irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free.

In addition, Intuit, the maker of TurboTax software, offers free assistance at TurboTaxHealth.com to help people determine if they are eligible for low-cost health insurance and what the tax penalty will be if they have not bought it.

Most taxpayers — those with employer-provided health insurance or Medicare or Medicaid — do not have to fill out any complicated forms. All they have to do is check a box on the Form 1040. A third group of people qualify for exemption from coverage, and they need to fill out Form 8965. More information is available at irs.gov/pub/irs-pdf/p5201.pdf.

Large employers are required to report health insurance coverage on employee W-2 forms for 2014, but that shouldn’t cause any problems. “Don’t worry,” Ms. Weltman said. “It’s not taxable” to employees.

Identity Theft

Identity theft is not limited to stealing credit card data.

Thieves also use stolen Social Security numbers to file returns and claim refunds, generally early in the filing season. And the I.R.S. said last month that trying to stop this kind of theft is a top priority. It opened 1,063 identity theft investigations last year, it said, and that led to 748 sentences imposed in criminal cases.

Julian Block, a tax lawyer in Larchmont, N.Y., said taxpayers could protect themselves from identity thieves by filing a new Form W-4 with employers and keeping close tabs on quarterly payments of estimated taxes so that they have a balance due, not a refund, when they file their tax returns.

“If you file a return claiming a refund and the I.R.S. says, ‘We’ve already received a return claiming a refund and paid it,’ they will investigate,” Mr. Block said. “Eventually you’ll get your refund, but it could be a considerable time. If you have a balance due and send in a check, if the I.R.S. has already sent a refund, they’ll have to sort that out, but you won’t have a problem.”

Tax professionals have long recommended that taxpayers limit withholding to avoid big refunds simply because too much withholding amounts to giving the Treasury an interest-free loan.

The Job Hunt

Job search expenses may provide a tax deduction for some people. After all, the nation’s unemployment rate fell to 5.6 percent at the end of last year from 9.9 percent five years earlier, and that surely reflects a lot of job searches.

Even so, many searchers may not qualify for a deduction, said Greg Rosica, a contributing author to the “EY Tax Guide 2015,” published by Wiley, and a tax partner at Ernst & Young. Mr. Rosica, who leads the firm’s southeast area private client services practice in Tampa, Fla., gave three reasons that would bar many job seekers from claiming a deduction:

■ These expenses are classified as “miscellaneous itemized deductions,” which can be taken only if the total exceeds 2 percent of adjusted gross income.

■ Online job searches these days do not generate all of the travel and printing expenses that seekers used to rack up.

■ The new job must be in the same field as one’s previous employment. Many people change fields to land a new job.

Of course job seekers who meet all the qualifications — perhaps paying for outplacement counseling, travel and other costs — may claim the deduction, even if their searches were not successful.

State Sales Taxes

State income taxes may be deducted on your federal tax forms, but Mr. Rosica said that for residents of some states, it may be worth considering whether to deduct state sales taxes instead.

This may be done on Schedule A, and for people in states like Florida and Texas that do not have a state income tax, deducting sales taxes makes a great deal of sense. It may also be the right thing to do for people in other states who have bought a big-ticket item like a car in the past year.

It may also make sense for retirees because many states give tax breaks for Social Security, retirement account distributions and pensions, thus lowering adjusted gross income.

Extra Medical Expenses

The Affordable Care Act hasn’t changed one reality: Health insurance doesn’t take care of all medical expenses.

Mr. Block pointed out that such unreimbursed expenses are still deductible — but only when they exceed certain thresholds. For most people, it is 10 percent of adjusted gross income — but it is 7.5 percent for people 65 or older.

The cost of hearing aids and dental care, private-duty nursing, travel to and from medical appointments, including tolls and parking, are frequently not reimbursed and are eligible for inclusion as deductions.

Volunteers, in a hospital or as a delegate to a religious convention for example, may also incur deductible expenses for travel, meals and other out-of-pocket costs, he said.

Keeping Good Records

Mileage deductions vary, depending on your reason for getting on the road. The I.R.S. allows 56 cents a mile for unreimbursed business miles last year, 23.5 cents a mile for medical or moving purposes and 14 cents a mile for charitable use.

Keeping good records is the key to being able to claim deductions of many sorts.

One way to help is to use a designated credit card for any outlay that may be deductible, Mr. Rosica said, and then go online to get an end-of-year report from the card issuer.

Brittney Saks, the United States personal financial services leader for PricewaterhouseCoopers, pointed out that most deductions need third-party documentation, like a Form 1098 from a bank reporting mortgage interest, or a receipt from a charity for contributions above $250, but the travel and out-of-pocket charitable expenses depend on personal records.

Many people overlook these deductions because of the bother of having to always carry a journal to jot them down. But most of us carry a smartphone, which can be used to take notes.

There is no specific requirement for how to keep records, Ms. Saks said. The important thing is to note the expenses as they are incurred.

Another area where record-keeping is important, she said, is investments. When a holding is sold, for example, both the cost basis and the sale price and the date of each must be reported to determine whether the taxpayer has a gain or loss.

Your brokerage firm or fund company may provide that information, but you may need to go over your own records to be sure the data is accurate, she said.

Under current rules, if the asset sold is an inherited one, Mr. Block said, its basis is not the original owner’s cost but its value on that owner’s day of death. If the inheritance is a publicly traded stock, the day-of-death value is easily obtained. The value of other assets — collectibles, real estate, artwork — may be more difficult to determine, but determining that value could bring big tax savings.

Say a man inherited a family home in 2014 from a parent who died in 2013. It may have cost $50,000 in 1970 and risen to 10 or 12 times that much by 2013, then risen just a few thousand more by 2014, when the son sold it. The son is liable for taxes on the relatively small gain in value after he inherited the house, not on the big gains that occurred in previous years.

Family matters can be important for current returns and for future tax planning. Sidney Kess, a certified public accountant and lawyer with Kostelanetz & Fink in New York, gave several examples.

In one, a widower who lived alone filed as single, but in late 2013 his daughter’s marriage broke up, and she and her three children moved in with him. It was intended as a temporary move but lasted all last year.

He can file as head of household and claim them as dependents because he provided more than half their support. That will substantially reduce his taxes.

Mr. Kess also pointed out that alimony is deductible by the payer, who must report the recipient’s name and Social Security number. The recipient must report alimony received as income, and a recipient who fails to do so is inviting trouble from the I.R.S., Mr. Kess said.

Many affluent people help adult children or grandchildren financially. Rather than writing a check, they should consider giving appreciated or dividend-paying stocks, Mr. Kess suggests.

That can help the recipients because long-term capital gains and dividends are tax-free for people in the 10 percent and 15 percent tax brackets. Any individual can give up to $14,000 each (that is $28,000 for a couple) to as many people as they like with no gift tax consequences.

Such gifts can also be a big tax saver for owners of incorporated small businesses, who can give shares in it to family members and set the size of any dividends they pay. They may use the gifts as a long-term estate-planning strategy to transfer assets to adult children. That is a complicated matter that needs individual tax advice from an expert in trusts and estates.

Correction: February 22, 2015

An article in the special Your Taxes section last Sunday about tips to avoid pitfalls in preparing 2014 tax returns misstated the downside of excess withholding. It amounts to an interest-free loan to the Treasury, not a tax-free loan.

A version of this article appears in print on February 15, 2015, on page BU8 of the New York edition with the headline: Tips for Navigating a Changing Tax Landscape. Order Reprints| Today’s Paper|Subscribe

Source: http://www.nytimes.com/2015/02/15/business/yourtaxes/tips-for-filing-taxes.html?ref=topics