As tax season approaches, many individuals and businesses seek ways to reduce their tax burden. While some may be familiar with standard tax deductions and credits, there are several lesser-known strategies for local tax relief.
One of the most overlooked forms of tax relief is the innocent spouse relief. It allows a spouse who filed a joint tax return with their partner to be relieved of joint tax liability in certain situations, such as when the other spouse committed fraud or failed to report income.
Another form of tax relief is the offer in a compromise program. It allows people to settle their tax debt for less than the full amount owed. It can be a valuable option, but there are strict eligibility requirements.
Taxpayers who have suffered a casualty loss due to a disaster such as a fire or a storm may also be eligible for tax relief. It allows for a deduction for any loss not covered by insurance or other reimbursements.
Additionally, tax relief may be available for those who donate to charity or invest in certain types of businesses or property. Taxpayers can also use tax credits for energy-efficient home improvements, child and dependent care expenses, and education expenses.
While local tax relief options may vary depending on individual circumstances, taxpayers must know all the potential strategies for reducing their tax burden. Consulting with a tax professional can also help identify and take advantage of all available options.