It is not long until your federal income tax return is due.  Here are some deductions and credits you should not overlook.

Do not forget that day camp fees may be deductible.

Child care credit – If you pay your child-care bills through a reimbursement account at work, do not forget the child-care credit.  Although only $5,000 in expenses can be paid through a tax-favored reimbursement account, up to $6,000 (for the care of two or more children) may qualify for the credit.  Even if you run the $5,000 maximum through a plan at work but spend more for work-related child care, you can claim the credit on as much as $1,000 of additional expenses.  To be able to claim the credit for child and dependent care expenses, you must file Form 1040, Form 1040A, or Form 1040NR.

Charitable contributions – You have been a generous person.  Do not forget to include ALL of the deductions to which you are entitled.   Review your bank accounts for checks to charities.  Do not forget payroll deductions for United Way or other check-off charities.  Your last December pay stub may have the totals withheld for the year.  You can also write off out-of-pocket costs incurred while doing your good works.  Supplies you provide or use for a nonprofit organization are deductible. Stamps you buy for nonprofit fundraising count as a charitable contribution. If you drove your car in helping a charity in 2009 you may deduct 14 cents for every mile you put in your car on their behalf.

Moving expenses to take your first job – Moving expenses to get to a new or your first job are deductible.  If you moved more than 50 miles for the new position, you can deduct the cost of getting yourself and your household goods to the new area.  You may include 24 cents per mile if you drive your own vehicle for a 2009 move.  You may also deduct any parking fees and tolls you pay in route.  You have to hang in their in the new job.  You must work full time for at least 39 weeks during the first 12 months after you arrive in the general area of your new job location.

State sales taxes- If you live in state that does not have an income tax, you may choose to deduct state and local sales taxes.  (See post at   http://www.johnbrianfastcpa.com/1389/states-with-no-income-tax/   for states that have no income tax.)  The IRS has tables that show how much residents of various states can deduct.  However, these tables do NOT include local sales taxes.  For example, in Dallas, the local sales tax is 8.25% because of local additions, but the tables for Texas only show 6.25%.  In this case, use the 8.25% amount.  If you purchased a vehicle, boat or airplane, you may add the state sales tax you paid for these big-ticket items to the amount shown in the IRS tables for your state.  Sales taxes for building materials that are for remodeling or renovations should also be added.

Military reservists’ travel expenses – Members of the National Guard or military reserve may tap a deduction for travel expenses to drills or meetings. To qualify, you must travel more than 100 miles from home and be away from home overnight. If you qualify, you can deduct the cost of lodging and half the cost of your meals, plus 55 cents per mile for 2009 for driving your own car to get to and from drills.  Again, like moving expenses, you can add parking fees and tolls.

State tax paid last year – This is a deduction that many taxpayers miss.  If you owed tax when you filed your 2008 state tax return in the spring of 2009 you may include that additional amount in your state-tax deduction on your 2009 return.  Of course, any state income taxes withheld from your paychecks or paid via quarterly estimated payments to the state are deductible.

Credit for energy-saving home improvements – These credits may be substantial.  The tax credit for the cost of energy-saving home improvements is increased to 30% for 2009 and 2010, up to a maximum of $1,500 in the two-year period.  This credit applies to biomass fuel stoves, qualifying skylights, windows and outside doors, and high-efficiency furnaces, water heaters and central air conditioners.  There is no dollar limit on the credit for qualified residential alternative energy equipment, such as solar hot water heaters, geothermal heat pumps and wind turbines. Your credit can be 30% of the total cost of such systems.

The homebuyer credit has been expanded.

Homebuyer credit -

For most of 2009, only first-time homebuyers qualified for this credit. A “first-time buyer” is defined as someone who didn’t own a home in the three years leading up to the purchase of a new home.  However, after November 6, 2009. First, in addition to the $8,000 credit for first-time homebuyers, there’s a $6,500 credit for longtime homeowners, those who continuously owned a home for at least five of the eight years leading up to the purchase of a new home. The new law also increases how much buyers may earn and still claim the credit. For deals closed before November 7, the right to the first-time buyer credit gradually disappears as adjusted gross income rises between $75,000 and $95,000 on single returns and between $150,000 and $170,000 for married couples who file jointly. For purchases after November 6, the phase-out zones–for both the $8,000 credit and the $6,500 credit — are $125,000 to $145,000, respectively, for singles and $225,000 to $245,000, respectively for married couples.