subject: Pay Less in Taxes, 3 Tips! [print this page] 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!
