Many miss deductions during busy tax season

by Anna Jauhola • Daily News
Published/Last Modified on Monday, February 16, 2009 10:20 AM CST

There are several discounts tax payers can get in Minnesota and North Dakota that may be overlooked. A few include lifetime learning credits on college students, deductions for required school supplies and mileage reimbursement.

North Dakota Tax Commissioner Cory Fong announced recently the deadline this year for North Dakota property owners to receive a 5 percent discount on full payment of their property tax is extended to Tuesday, Feb. 17.

“Because the due date falls on the President’s Day holiday weekend, payments made by Tuesday, Feb. 17, will still qualify for the 5 percent discount for early payment,” said Fong.

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Velma Bjorgum, master tax adviser at H&R Block in Wahpeton, said, "The sooner you file the sooner you get your taxes back." There is a deduction many do not think about for tax season, which is the mileage put on a vehicle for work or medical purposes. For federal income taxes this year, a person can submit their mileage for 50 1/2 cents per mile from Jan. 1-June 30, 2008, and 58 1/2 cents per mile from July 1-Dec. 31, 2008. For medical care, tax payers can be reimbursed 19 cents per mile and 27 cents per mile after June 30, 2008.

For students, you can claim a lifetime learning credit if all three criteria are met — pay qualified tuition and related expenses of higher education, pay the tuition and related expenses for an eligible student, and the student is you, your spouse or a dependent for whom you claim an exemption.

In North Dakota, you can claim property tax relief for income tax credits on 2007 real estate tax and the 2008 mobile home tax. You must have owned the eligible property on the due date of these taxes to claim these property taxes. The 2007 real estate tax was due Jan. 1, 2008, and the 2008 mobile home tax was due Jan .10, 2008.

In Minnesota, tax payers who homeschool children can file for reimbursement on regular materials used in public schools like paper, pens, pencils, erasers, notebooks, rulers, chalk, home ec supplies, shop supplies, art supplies, science beakers, test tubes, sheet music, computer paper and printer ink cartridges.

For more information about what deductions you may be missing this tax season, visit your tax adviser or call your state's tax department. North Dakota's tax department number is 701.328.3127 or toll-free 877.328.7088 or visit http://www.nd.gov/tax/. Minnesota's tax department number is 651-296-3781 or 1-800-652-9094 or visit http://www.taxes.state.mn.us/.


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