Tax time is almost here. If you are getting a refund, you should have filed already! If you are going to be paying taxes because you did not withhold enough, here are some tips to minimize that payment. Even if you cannot use all these tips for this tax season, they will come in handy for next year's tax season.
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Give Giving really can be rewarding. Not only do you feel good about giving to the causes you believe in, you also get some money back from Uncle Sam. If you've given to your church, charities or other non-profit organizations - all you need is the receipt and you can deduct the amount you gave. If you need ideas, I can suggest the NYC Libraries, Wildlife Conservation Society (WCS), Red Cross, your local church, museums and numerous other charities.
Deduct Job hunting expenses If you are looking for a job, and these days it seems like half the people I know are, then you should not forget about deducting your expenses. These can include printing resumes, transportation to and from interviews, cell phone bills, suits and other clothing for interviews. The catch is, you need to be looking for a similar line of work.
Go Green. Many people in the recent past have bought a Toyota Prius and get a deduction. But going green doesn't stop there. If you put a good amount of money into your home to improve energy efficiency such as heating or cooling systems, insulation, or alternative energy sources such as solar, you can get a nice tax credit on your return for that year.
Educate Yourself. Continuing your education can be good for your future earnings and your wallet. There are tax credits and deductions for you to take. Interest from student loans are deductable from your return as well. If you have a large enough loan, this can be pretty significant.
Tax Preparation. Books, classes, software and tax preparation services are deductible on your tax return as a miscellaneous itemized deduction. It's easy to find this tip using software such as Taxcut or TurboTax.
What tax savings tips do you have to share? What deductions and savings are you taking this year?
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photo by alancleaver_2000