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Pay Less in Taxes, 3 Tips!
Taxes are one of the largest expenses any family encounters. There is no law that states you have to pay more than required. So DON'T!
There are simple mistakes that EVERY person makes when it comes to paying taxes. The tax code is just too complex for any one person to figure out. But you can still save money using it.
3 quick tips on how to save on your next tax bill:
1. Use a computer.
Programs like TurboTax and H&R Block's TaxCut having become very sophisticated. They can e-file your return for you. You'll save on the filing costs. Also, you get your rebate back in 2 weeks! I like my money getting to me more quickly.
2. Itemize.
About 40% of Americans miss out on tax savings because they decide to not itemize their deductions. They think their saving time, but they are really just losing money. They are missing out on savings from their home, children, schooling, the list goes on. Don't give your money away...or at least give it away to charity!
3. Quit smoking? Save. Lost weight? Save.
Medical costs that exceed 7.5% of your AGI are deductible. When you factor in doctor visits, prescriptions, and hospital stays this can be achieved. If your doctor prescribed a stop smoking plan or a weight loss plan, then this can fall under "medical costs" as well.
Don't pay more taxes than you need to. You work hard for your money and should enjoy it. Don't let the government enjoy it for you. They gladly will.
The government won't give you money back for money you forget to save. They will come after you for not paying though. So always consult a tax specialist, but make sure they are maximizing YOUR money. Keep that money in your pocket and use it to pay bills, save for retirement, and invest. Good Luck!
About the Author
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Home office tax deduction, I have 2 businesses?
I have a home office, I am a real estate agent and work mostly from home. I also have another business I work on the side selling & advertising my products online, I am using taxcut & wondering if I put a home office under each business or just claim 1 home office under my real estate which makes the most money?
For the real estate it doesnt matter if you work more from home unless you are a self employed broker. If you have a main office that you can go to then the home office is not necessary. It may be ok for the second one. It must be ordinary AND necessary. Not convenient. The space must be used exclusively for your business. You cant go in there off time and play computer games or watch tv. If you rent then I say go for it. If you own the home then think twice of deducting home depreciation as you will have to add that back in if you sell in less than the 40yrs it takes to depreciate it. If you have a 2000 sq ft home and the office is 500 sq feet then it uses 25% of your home. You can deduct 25% of costs like utilities and rent. Supplies, insurance, expenses are always deductible for either job.
Tax Cut Bill Passes Over House Dem Objections
