Money-saving deductions you can use

PORTSMOUTH, Va. (WAVY) - It's not too early to start thinking about filing income taxes.

WAVY.com talked with a tax expert at H&R Block about some underutilized deductions tax payers can use. Craig Rhodes said there are several possibilities for parents who support their children in college.

Rhodes explained, " American Opportunity Credit , which is for four years. Before it was just the Hope Credit , [which was] two years. Now, it's for four years."

Another education-related deduction is the Lifetime Learning Credit .

"The Lifetime Learning credit, which is per tax return, is $2,000.00 for the first $10,000.00 they pay in fees for school. The other thing they can possibly qualify for is the education adjustment, which is $4,000," Rhodes added.

The H&R Block representative says many people think you can file with your last pay stub of the year. While that can get you started, you still need a W-2 form, plus any other supporting tax-related documents.

Even if these deductions do not apply to you, H&R Block said there are some things you can do to get ready for tax season:

• Make sure you have a copy of last year’s tax return, and bring it with you to your tax preparer. All taxpayers should keep record of their prior year tax returns.
• Gather all important contact information, Social Security numbers. Make sure your address with the IRS is correct so you’ll be sure to receive your refund.
• Generally, hold onto anything that says "important tax document" on it and receipts (charitable donations, taxes, day care expenses, energy efficiency improvements, contributions to 529, job search expenses, etc.)
• Life changes mean tax changes. So keep items of paperwork related to any life changes (school, marriage, death, having a baby, job searching, business ownership, etc.)