With the holidays over, it’s now time to start preparing for taxes season. Being prepared can mean fewer headaches and potentially more savings when you file a return. The following are guidelines that can help you save money on your taxes.
Save when filing:
Filing taxes used to be a thing for accountants and professional tax preparers. Thanks to computers and tax software, it is now easier to prepare and file taxes on your own. A benefit of filing on your own is that the cost of filing is usually less. Software such as turbo tax also allows you to prepare and file taxes all in the comfort of your own home.
Save if you have children:
If you have children, your savings will be even greater. As a parent of children 17 and under, you can receive a $1,000 credit. You can also save money if your children are attending college. You may have to look into what credits apply for undergrad students as most credits have limited lifespans and are at times extended or replaced with other credit based programs.
Save money while helping out non profits:
Did you know that many charitable contributions to non profits are tax deductible. That’s right, helping others can help you save some money. Make sure that there is documented proof of your donations.
Running your own home business:
If you are one of the many Americans that works from home, there are many tax breaks that you can take advantage of. Make sure that are careful to differentiate areas in your home that are used for business. It is strongly recommended that you have a section in your home with your business as its primary function. If you are going to use your home as a tax write off, keep track of all necessary documentation in case of an audit.
Have you made any recent improvements to your home? Well some improvements can end up saving you some money when you file your return. Energy saving improvements will earn you credit on your taxes.
These are a few simple ways to save money when filing your taxes. Saving money is all a matter of being aware of all possible options. This can be done with some research or having access to a good accountant.