Well we agree it’s a little late to do much about your pending bills but it seems everyone is looking for a quick run through of what can be done just in time before filing returns. However, start saving on your personal income tax bite during the year and make additional strategic moves as the year-end approaches.
Here are some basic and helpful tips for saving on your taxes this year:
1. Keep all business-related receipts: Keep track of what the receipts are for, and save them in a safe place.
2. Claim deductions: Many people neglect to carefully look for, and claim, all the deductions to which they're entitled. By simply taking the standard deduction, you may miss out on other available deductions.
3. Take all applicable tax credits: For each child under the age of 17, there is a limited amount of credit. There are also various other credits, such as those available when you adopt a child or when you elect to claim a Lifetime Learning Credit.
4. Take a loss: If you’ve done well with your investments and are looking at significant capital gains, prior to year-end is the time to offset some of those gains by selling a losing venture.
5. Consider tax-free investments: Returns are not very high, but if you're looking for a safe, tax-friendly investment, consider tax-free government or municipal bonds, among other such investments. This type of investment is particularly good for a high-income individual.
6. Remember charitable donations: Make donations and you can lower your tax bite but just remember to get receipts.
7. Max out your retirement plan contributions: Of course, by doing so you're assuming that your personal income will be lower when you withdraw the money. While that may or may not be the case, it’s safe to say that if there are a number of years until you start taking distributions, the tax laws will likely change many times over between now and then, hopefully in your favor.
8. Double-check your work: Errors in tax preparation and on tax returns account for millions of dollars that taxpayers could save very year. Remember to double-check everything.
Source: http://www.allbusiness.com
Follow us : http://www.facebook.com/KarvyPrivateWealth
1. Keep all business-related receipts: Keep track of what the receipts are for, and save them in a safe place.
2. Claim deductions: Many people neglect to carefully look for, and claim, all the deductions to which they're entitled. By simply taking the standard deduction, you may miss out on other available deductions.
3. Take all applicable tax credits: For each child under the age of 17, there is a limited amount of credit. There are also various other credits, such as those available when you adopt a child or when you elect to claim a Lifetime Learning Credit.
4. Take a loss: If you’ve done well with your investments and are looking at significant capital gains, prior to year-end is the time to offset some of those gains by selling a losing venture.
5. Consider tax-free investments: Returns are not very high, but if you're looking for a safe, tax-friendly investment, consider tax-free government or municipal bonds, among other such investments. This type of investment is particularly good for a high-income individual.
6. Remember charitable donations: Make donations and you can lower your tax bite but just remember to get receipts.
7. Max out your retirement plan contributions: Of course, by doing so you're assuming that your personal income will be lower when you withdraw the money. While that may or may not be the case, it’s safe to say that if there are a number of years until you start taking distributions, the tax laws will likely change many times over between now and then, hopefully in your favor.
8. Double-check your work: Errors in tax preparation and on tax returns account for millions of dollars that taxpayers could save very year. Remember to double-check everything.
Source: http://www.allbusiness.com
Follow us : http://www.facebook.com/KarvyPrivateWealth
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