7 Easy Tips On How To Save Money On Taxes
EASY TIPS ON HOW TO SAVE MONEY ON YOUR TAXES
Everyone loves paying taxes.......yeah, right!
Paying taxes though, like death, is inevitable.
However, with a little bit of help and some great timely tips, you can save some money on your taxes rather than throwing it back to the government.
Don't they have enough of our money already?
Let's examine some great little smart tips for saving on your taxes!
Ways to Decrease Your Tax Liability
- Moving on up. Well, maybe not up but anywhere. If you have to relocate for a job, keep track of your expenses (via receipts). Your moving expenses will be deductible expenses.
- The graduate. If you have student loans and you're still paying on them, the interest that you pay is deductible. In this case, you do not have to itemize.
- Eco-friendly or green deductions. Tax credits and tax deductions are available if you reduce your home's energy use. Yeah environment! For more information on this go to energystar.gov and check out the Energy Policy Act.
- Say ah. If you have medical expenses, you can itemize them all. You can deduct charges for prescriptions, durable medical equipment, office visits and surgeries. You can even deduct the gas, food and lodging expenses if any for going to and from your medical appointments along with other miscellaneous expenses. Go to the IRS website at irs.gov and get more information.
- Charity starts at home. Keep track of anything you donate (again with receipts) from food to food drives at Christmas time and other times of the year, to any expenses you incur such as driving to do charity work or volunteering. You can even deduct monies you've spent on materials, such as fabric for cancer quilts or food for charity events. Don't forget anything involving charity events that have a "suggested donation" attached but no real price are also deductible. You get the fair market value for anything you donate such as appliances, clothing, etc. Many things are deductible but always back up all donations with receipts.
- Spending money to make money. Anything that costs you money to manage your money (if it is more than 2% of your annual gross income) is deductible. We're talking about safety deposit boxes, fees to prepare your taxes, subscriptions to magazines on how to invest, tax preparation programs and calls to your accountant or broker.
- Pay it forward. If you get into the habit of paying your January mortgage in December, your interest for that January payment is deductible in the current year.
7 Easy Tips on How to Save on Your Taxes
These are just a few tips on how to save on your taxes.
Check out the websites above for more ideas.
Don't forget about the green tax credits and deductions that are available for business owners and private citizens as well such as deductions for putting on an environmentally-friendly roof or putting in solar panels.
There are many different tax credits and tax deductions that you can get for purchasing energy smart appliances or even changing out your light bulbs.
Call your local power company to find out about more tax deduction and tax credit opportunities specific to your area.
Tax credits are more lucrative than tax deductions but no matter how you save on your taxes, it's money Uncle Sam doesn't get!
No matter how you do it, saving money on taxes is always a bonus you give yourself.
If you have more tips on how to save money on your taxes and reduce your tax liability, please share them with us in the comment section below!
More by this Author
Budgeting tips for low income families. All families could benefit from these money saving tips.
Let's explore the difference between being frugal and being cheap. Which is better, cheap or frugal? And is there really a difference?
- EDITOR'S CHOICE2
I learned the hard way not to put an ice pack directly on my skin. Here's how to treat ice burns quickly, and how to avoid them as well.