Top Tips to “Break the Tax Code” And Stretch Your Do-It-Yourself Dollar
Fri, 11/09/2012 - 4:26pm | by Dominique Molina
With the current state of our shrinking economy, financially squeezed consumers are turning more toward “Do-It-Yourself” projects on everything from landscaping, to car maintenance, and even taxes – all to save more and hang on to their hard earned money.
With many off-the-shelf, user friendly software options available, the IRS estimates do-it-yourself tax preparation will hit an all time high this tax season with over 35 million taxpayers preparing their own returns!
1) Don’t Wait! - If you want to keep every dollar the law allows, you can’t afford to wait until April 15th. Get started now to pay less!
2) Make a plan - that takes advantage of every available deduction, credit, loophole and strategy. Tips for your tax plan to ensure you pay less at tax time:
● First, if you own a business, don’t miss your out of pocket business expenses. Most business owners occasionally pay for things outside the business bank account. Go back through your credit card and bank statements to find these pots of gold! This works for employees too! If you’ve paid work related costs with your own money, deduct it and save!
● Go Green and capture those energy saving credits! – Tax credits, which are dollar for dollar reductions of your tax bill, are available for certain eco friendly purchases: cars, appliances, and home improvements. This credit is due to expire this year, so make sure you don’t miss out!
● Don’t Miss the Low Capital Gains Rates – Low Capital Gains Tax Rates will hang around until at least December 31, 2012. Don’t miss your chance to sell appreciated assets to lock in a nice low rate. This can you save THOUSANDS!
3) Find an expert who can coach you to a lower tax bill. There are tax professionals out there, who receive ongoing continuing education in the area of tax planning who will review your tax return for free to spot your mistakes and missed opportunities. Take advantage of the help and keep more of what you earn!