Tax Return Advice
What does a new tax year mean to us? It means new tax laws. There are a lot of pro-active things you can do year round to make the best of your income tax return form. January is not the only time to think about taxes.
Perhaps you have concerns about how unemployment, buying – selling, or losing a house, retirement plan withdraws, or how investment losses will impact your taxable income. Do you have a dependent who is attending college? How about large medical bills? All of these situations can impact your taxable income in a big way.
Keep up to Date with New Tax Laws
Tax planning will benefit you the most if you’re up to date on new tax laws. First time home buyers can take an $8,000 deduction under certain constraints of course but, it’s knowing about the new credits or deductions that can lower your taxable income.
Filing Status and Dependents
Whether you are Single, Married, or Head of Household, you must determine which filing status will benefit you the most. You will first make sure you qualify. If you’re single you may be able to claim Head of Household which will give you a bigger standard deduction.
Sometimes it’s better to file as Married Filing Separately. Now you cannot say you’re single if you’re married. Do not do something like that. That’s no good and will get you into trouble which is what we’re trying to avoid.
Dependents are great because they equal a deduction. You may also be able to take the child tax credit, the child and dependent care tax credit, or the earned income tax credit. As I already alluded to, the unmarried taxpayer may also be able to qualify as Head of Household if he or she has a dependent. Make sure you have a qualifying dependent. There are strict rules for claiming a dependent.
Donations to Charity
Don’t forget to make sure the charity is a qualified charity for the ability to deduct the donation from your taxes. You will also need to keep the receipt of donation which should be on a letter head paper with the charity logo and information on it.
So Many Areas to Consider
Did you think about medical deductions, education deductions, inheritance gifts, Roth IRAs, or so many other areas where you can make wise decisions to reduce your taxable income? If you are looking for sound tax return advice you should use an online tax preparation software company.
Online Tax Return Advice and Tax Preparation
Now you can get online tax advice along with the preparation of your income tax return. TurboTax Online has state of the art tax software that will advise you as you enter data. If the software starts to notice you could have made a change that would improve your situation, it will let you know and even tell you if you’ve picked the wrong Form for your life situation.
I know this all sounds too good to be true but, it is really true and there’s even more good news about online tax software.
It’s so easy to use, you are guaranteed the biggest refund possible or least tax owed, it’s safe and secure, Rated #1, Steers you clear of trouble with Audit Alert, and has a whole community of people who can help you if you get stuck. TurboTax Online is the Best Selling Tax Software! That’s the best tax return advice I can give you.