Helpful last minute tax advice
I suggest you get your 1040 form and finish your taxes
now. Don't even think of doing anything else. My taxes
are always done on January 1st.
And yes, I did get a refund.
Here's some helpful tax advice.
now. Don't even think of doing anything else. My taxes
are always done on January 1st.
And yes, I did get a refund.
Here's some helpful tax advice.
Most Overlooked Deductions
Deductions allow you to reduce your taxable income and thus reduce your tax bill. Most taxpayers are entitled to a
"standard deduction" - a fixed amount that reduces the amount of income on which you are taxed.
Certain kinds of deductions are called "itemized deductions." If you have enough of them to beat the standard
deduction, it is usually a good idea to itemize instead. For many taxpayers, purchasing a home is the event that
makes itemizing worthwhile.
If you own your own business, there are some additional deductions that apply to you. Some of them are
"above-the-line" deductions and some are claimed directly on your business schedule, called a "Schedule C."
Your mortgage interest and real estate taxes may be your biggest deductions, but don't forget:
Medical expenses - in addition to what you've spent on doctors, hospitals, and medicines, other possibilities are
health insurance premiums, prescription eyeglasses and contacts, hearing aids, medical transportation, equipment
for handicapped people, and nursing home expenses, state and local income taxes and personal property taxes.
Out-of-pocket job expenses that were not reimbursed by your employer, car expenses, travel expenses,
uniforms, union dues, and continuing education expenses, safe-deposit box fees, tax preparation fees, certain
legal fees, and other expenses.
Find out more here.
Deductions allow you to reduce your taxable income and thus reduce your tax bill. Most taxpayers are entitled to a
"standard deduction" - a fixed amount that reduces the amount of income on which you are taxed.
Certain kinds of deductions are called "itemized deductions." If you have enough of them to beat the standard
deduction, it is usually a good idea to itemize instead. For many taxpayers, purchasing a home is the event that
makes itemizing worthwhile.
If you own your own business, there are some additional deductions that apply to you. Some of them are
"above-the-line" deductions and some are claimed directly on your business schedule, called a "Schedule C."
Your mortgage interest and real estate taxes may be your biggest deductions, but don't forget:
Medical expenses - in addition to what you've spent on doctors, hospitals, and medicines, other possibilities are
health insurance premiums, prescription eyeglasses and contacts, hearing aids, medical transportation, equipment
for handicapped people, and nursing home expenses, state and local income taxes and personal property taxes.
Out-of-pocket job expenses that were not reimbursed by your employer, car expenses, travel expenses,
uniforms, union dues, and continuing education expenses, safe-deposit box fees, tax preparation fees, certain
legal fees, and other expenses.
Find out more here.
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