Good Tax Tips
Before you even think about paying taxes, start planning now to lessen your tax burden. Do not make the mistake of paying more taxes than necessary.
Invest a few minutes to learn good tax tips that can save you money.
Other People Are Reading
-
Records
-
Accumulate receipts and other records of items that can be deducted from your income tax throughout the year. Store all of these records in a shoebox and use them at tax deduction time. If you are comfortable with using a computer, use a spreadsheet program or a personal financial program to enter and track these deductible items.
Tax Preparer
-
Choose who prepares your taxes carefully, according to the National Association of Enrolled Agents. If you are considering an accountant you have never worked with before, ask him for references and call them. Also ask him how long he has been practicing and what percent of his work is personal tax preparation as opposed to other matters. Also ask him to describe the tax services he provides. Notice if he mentions he will help you with tax planning and provide tax advice instead of simply filling out your return.
-
Charity
-
Keep records of all charitable contributions and don't forget about the small donations such as grocery items you bought while preparing food for a not-for-profit event, recommends Kiplinger On Line.
Job Hunting
-
Keep a record of every expense incurred for job hunting. Such costs include, but are not limited to, food and lodging for out of town trips, cab fare, fees paid to employment agencies, cost of printing resumes and stamps to mail resumes.
Health Insurance
-
You can deduct health insurance premiums if you own a business. Health insurance premiums are factored in when calculating taxes from self-employment on Schedule SE.
Tax Preparation
-
If you use tax preparation software, an on line tax service or an accountant to prepare your return, you can deduct these expenses.
Home Business Expenses
-
If you work at home, investigate deducting a prorated share of your mortgage and other home upkeep costs based on the percent of space in your home devoted to your business. Be aware that for home expense deductions, your home must be your primary place of business, according to the website Bank Rate. Also deduct other direct expenses related to your business such as a dedicated business home telephone number.
-
References
Resources
- Photo Credit tax forms image by Chad McDermott from Fotolia.com
