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Kamis, 13 Februari 2014

How To Prepare For Tax Season Ahead Of Time

By Norbert Higensen


At the end of every tax season there are people who wish they could have done more to qualify for additional tax breaks, but the truth is that these same people more than likely already have done enough to qualify for huge and common tax deductions but simply forget or forgo their use.

With billions of dollars in unutilized tax deductions every year across America, those who are taking advantage of the many tax deductions available to them are getting more of their money back in their tax returns.

So what steps can be taken simplify or improve the tax filing process? First, save documents and receipts that can be used for your records; in case of a tax audit and to have them available to input data during the tax filing process. Second, select the software such as Turbo Tax or Quicken if you are filing on your own, or choose a tax company such as H&R Block that can file your taxes for you for a fee. Tax credits can save money

The ironic thing is that most people know that they can receive a deduction on their taxes for donations to charity but still do not take advantage of the tax credit offered for doing so. Perhaps one reason why people continue to forgo their rightful tax deduction on charitable donations is because they simply forget that they have donated.

* Child and Dependant Care Credit: Assists in providing supplemental credit for daycare costs for dependants less than 13 years of age.

Contact a Tax Expert

As with all tax laws, there are specific regulations and requirements that qualify a person to receive a tax deduction equal to their medical expenses, but in general there are two ways for a person to deducted healthcare costs, including healthcare insurance premiums, from their owed taxes.

The first way to qualify is if one is self-employed and not covered by a policy from an employer, in which case a full one hundred percent of one's health insurance premiums and health care costs can be tax deductible.

Taxes also can become a venue for tax crimes or may include individuals or companies are delinquent on their taxes. In this case the IRIS can take minimal to strong legal actions against such parties if the law is broken. Those who commit tax fraud or avoid paying their taxes or committing fraud in most cases will require a tax lawyer. Having a professional who can support and protect the interests of these individuals is vital in order to reconcile offences or settling on debts.

These are simply two of the many tax deductions that people routninely miss out on, but there are many, many more such as deducting the points on a home refinance, the points on an old home refinance, personal costs incurred in a business, and plenty of others. This year, take the time to learn all you can about the different tax deductions you qualify for and start receiving the money that is yours.




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