Tax Tips & Resources

Deductions

7 Deductions Michigan Residents Often Miss

Don't leave money on the table. Here are deductions that many taxpayers overlook:

State sales tax on major purchases — Bought a car, boat, or made big purchases? You can deduct MI sales tax.
Educator expenses — Teachers can deduct up to $300 for classroom supplies, no itemizing required.
Student loan interest — Deduct up to $2,500 even if you don't itemize.
Home office deduction — Self-employed? Don't forget your dedicated workspace.
Charitable mileage — Drove for volunteer work? It's 14 cents per mile.
Medical mileage — Doctor visits, prescriptions, therapy—it adds up at 67 cents/mile.
Job search expenses — If you searched for a job in your current field, some costs may be deductible.

Michigan

Michigan Tax Credits You Might Not Know About

Michigan offers several credits that can significantly reduce your tax bill:

Homestead Property Tax Credit — Both renters AND homeowners can claim this. Up to $1,700 back!
Home Heating Credit — Low-income? Get help with heating costs, even if you rent.
Michigan EITC — 30% of your federal Earned Income Credit. Free money!
Retirement income deduction — Seniors 67+ can now deduct more pension income (2023 law change).

Pro Tip: You can claim the Homestead Credit even if you don't owe any Michigan tax. Many people miss out on hundreds of dollars!

Avoid Mistakes

5 Common Tax Filing Mistakes (And How to Avoid Them)

These errors can delay your refund or trigger an IRS notice:

Wrong Social Security number — Double-check every SSN, especially for dependents.
Incorrect bank account info — One wrong digit means no direct deposit. Verify routing and account numbers.
Forgetting 1099 income — The IRS gets copies too. Report all income, even side gigs.
Filing status errors — "Head of Household" has specific rules. Make sure you qualify.
Missing signatures — Unsigned returns are invalid. Both spouses must sign joint returns.

Self-Employed

Essential Tax Tips for Freelancers & Gig Workers

Self-employment comes with unique tax challenges. Here's what you need to know:

Track everything — Keep receipts and records for all business expenses. Apps like QuickBooks Self-Employed help.
Pay quarterly estimates — Avoid penalties by paying estimated taxes in April, June, September, and January.
Deduct the self-employment tax — You can deduct half of your SE tax on your 1040.
Home office deduction — Use the simplified method ($5/sq ft, up to 300 sq ft) or actual expenses.
Health insurance premiums — If you pay your own health insurance, it's 100% deductible.
Retirement contributions — SEP-IRA, SIMPLE IRA, or Solo 401(k) can shelter significant income.

Did you know? You can deduct mileage OR actual car expenses—not both. We'll help you figure out which saves more.

Planning

Year-Round Tax Planning Strategies

Smart tax planning happens throughout the year, not just in April:

Adjust withholdings — Big refund? You're giving the IRS an interest-free loan. Update your W-4.
Bunch deductions — If you're close to itemizing, group expenses (charity, medical) into one year.
Max out retirement accounts — 401(k) contributions reduce taxable income now. IRA deadline is April 15.
Harvest capital losses — Sell losing investments to offset gains. Watch the wash sale rule.
Keep records organized — Create folders for tax documents as they arrive. Your future self will thank you.
Review life changes — Marriage, baby, home purchase, job change—all affect your taxes.

Refunds

How to Get Your Refund Faster

Want your money ASAP? Follow these tips:

E-file your return — Paper returns take 6-8 weeks. E-file takes 1-3 weeks.
Choose direct deposit — It's faster and more secure than a paper check.
File early — Beat the rush. Returns filed in January/February process faster.
Ensure accuracy — Errors cause delays. Double-check names, SSNs, and bank info.
Track your refund — Use "Where's My Refund?" at irs.gov/refunds

Timeline: E-filed returns with direct deposit typically arrive in 10-14 days. Early season (late January) can be even faster—sometimes 8-10 days!

Quick Tips to Remember

Keep Records 7 Years

The IRS can audit returns up to 3 years back (6 for major errors). Keep records at least 7 years to be safe.

Report All Income

Even if you don't get a 1099, you must report all income. The IRS matches records—they'll know.

Don't Ignore IRS Letters

Respond promptly to IRS notices. Ignoring them makes problems worse. Bring letters to us—we can help.

File Even If You Can't Pay

The penalty for not filing is much higher than not paying. File on time and set up a payment plan.

Review Last Year's Return

Before your appointment, review last year's return. It reminds you what to bring and what might change.

When in Doubt, Bring It

Not sure if a document is needed? Bring it anyway. We'd rather have too much info than too little.