As we approach that mid-April day of dread, did you accomplish all of those tax recovery plans so carefully thought over last year? Maybe you are of the breed of taxpayer who’s filing date is as soon as that W-2 arrives. Maybe your my friend, (Alias) Steve, who hasn’t filed in seven years and shakes his fist at the Man. Whichever taxpayer you are, we all get that annual sense of dread. Be it doing the paperwork, or the lack of said paperwork, let alone paying Caesar, what is Caesar’s.
If you haven’t filed yet and your Adjusted Gross Income is under $57,000 you may qualify for “Free File” by the IRS. Several Tax Businesses are offering this service.
On the deduction front, have you ever used “Deduction Pro” from H&R Block? A very simple and (used to be) free program offered by H&R Block which puts a value to those donated goods. We have three growing teenagers and clothing and gadgets can add up. We always itemize and save the donation items and receipts for tax time. We also used the program for listing monthly monetary donations to Compassion International.
If you haven’t bought a home, get it done. Besides the historically low interest rates, you can write off every penny of those interest dollars you pay. Your home can be the best haven for family financial stability in your lifetime.
Another avenue for saving (paying yourself) is setting up an IRA. You can now put up to $5000/year in a tax deferred retirement account. I started years ago with $50 a pay period and it does add up. Any investment dollars, in your retirement, comes right off your Adjusted Gross Income for that year.
With the high cost of Health Care and high deductible insurance plans, you may want to look into a tax deductable Health Savings Account. Money saved can be used for non-covered insurance expenses and contributions are tax deductable, even if you do not itemize.
Hopefully Caesar stays out of your pocket in 2012 with these tax tips.
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