Tax Tips to Help Save You Money
The end of the year is quickly approaching, which means your financial books for the year will be sealed before you know it. Do you know how to save as much tax money as possible these last few weeks? Here are the best tips for you to use to put money back in your pocket:
Give money to a good cause.
Charitable donations are tax-deductible, so if you’re getting in the holiday spirit, add a local charity to your list and write a check to save money on your taxes. Have kids? Parents are also able to jointly provide each of their children up to $26,000 per year as a tax-deductible gift.
Go green.
Want to see more green in your wallet after paying taxes? Then go green in your home. The federal government offers tax credits to those who have certain green features built into homes, including installing insulation, qualified heating and cooling systems, and solar panels.
Manage your mortgage.
Mortgage payments are an itemized deductible expense in the eyes of Uncle Sam. To save extra tax dollars, make your January mortgage payment during December, and include this amount on your Schedule A itemized homeowner expenses.
Take a look at medical expenses.
Individuals receive tax deductions for certain medical expenses, so be sure to check if any of yours qualify. Items including bandages and breast pumps can be deducted, so keep a careful record of everything you purchase. For a full list of deductible items, visit irs.gov.
Don’t let Flexible Spending Accounts go to waste.
Money in Flexible Spending Accounts will disappear at the end of the year, so check to see if you have any left before it goes to waste. Have you been putting off seeing a doctor about a nagging pain, or buying a blood pressure machine to keep at home? Now is the time to take advantage of these leftover funds.
Although it’s possible to wait a few more months before paying this year’s taxes, it’s always best to get a head start on taking care of financial business.
Sources:
Financial Expert Offers Tax Tips To Help Save You Money
http://money.usnews.com/money/personal-finance/articles/2014/03/12/11-ways-to-save-on-your-taxes-this-year
http://www.bankrate.com/finance/money-guides/10-ways-uncle-sam-helps-you-save-money-4.aspx
