This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top 5 New Income Tax Deductions for 2013

PORTLAND, Ore. (TheStreet) -- Welcome to March, when people who haven't filed their taxes yet are fearing the inevitable hit, looking for time to do the math, tracking down someone to do that math for them or trying to figure out all of the changes to the tax code.

All those folks still sorting out how the fiscal cliff debate affected them will probably want to take a moment to look over the tax deductions created or extended by the American Taxpayer Relief Act of 2012. That's basically the tax portion of the fiscal cliff fix, and it just added a bunch of writeoffs to a collection of breaks most Americans miss anyway.

According to Rebecca Pavese, head of the tax practice at wealth management group Palisades Hudson Financial, American taxpayers are already missing a whole lot of simple deductions that existed well before the fiscal cliff. Pavese notes, for instance, that because it's usually a one-time expense, most Americans don't write off the costs of a job-related move or money they spent installing energy-saving windows, doors and insulation for their home.

Taxpayers also often tend to miss out on deductions for adoption costs, which can run into the thousands of dollars. In the case of members of couples who adopt their partner's child, the $12,650 benefit for second-parent adoption is the only such benefit extended to same-sex couples whose marriages are recognized by their home states.

Even some IRA contributions made until April 15 can be deducted, including Simple IRA, SEP IRA or Keogh plans. Taxpayers who apply for an automatic extension can include those when they file as late as Oct. 15 of this year.

Once taxpayers are up to speed on those deductions, they can start saving even more money by factoring these five fiscal cliff fixes into their 2012 filing

Student-loan interest
Are you one of the fortunate indebted graduates who was able to put some of that graduation money toward your student loans? It turns out early, voluntary interest payments are now deductible.

You can deduct the full amount of student loan interest -- up to $2,500 annually - even if you paid more interest than required, Pavese says. You can also deduct interest for as long as you have the loan instead of just for the first 60 months, as was the case before the new law changed that stipulation permanently. You may have entered the real world with some crushing debt, but at least it's deductible debt.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,112.00 +60.27 0.35%
S&P 500 1,984.00 +10.37 0.53%
NASDAQ 4,454.3560 +29.6520 0.67%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs