Here are a few taxes credits and deductions you should consider when doing your taxes this year.
- Retirement account: IRAs converting into Roth IRAs- When you are filing your taxes this year you need to look at the tax break you can get if you converted your IRA into a Roth IRA. As you know may know an IRA is an account you set up to start saving for your retirement. When you put money into your retirement account you can cut the amount of taxes you might have to pay in our current tax bill
- Day Care: One tax credit you may qualify for is if you are a parent is child care. In order for you to be eligible for this credit you must be working and having your child cared for by another person whom you are paying. You can save up to $6000 on your tax bill
- The Energy Credit: 2011 was the last year people were allowed to get a source of energy system installed in there home and use is as a tax break. Going green not only saved you money on utilities but it also saved on on your taxes
As we all know Facebook plans to become a publicly traded company sometime in 2012. I recently read an article about the possible tax bill the founder of Facebook Mark Zuckerberg might be paying once he exercises his stock options. Here is the article.
The amount of money he could possibly be paying absolutely insane. Its very possible that it could be the largest amount of money anyone has ever had to pay the IRS individually ever in the history of the United States. That’s what makes this story so interesting.
I recently read this Tax article on Yahoo.com About 12 different ways to save on taxes. It was an interesting read to say the least. The part that I found most interesting was the part about education. “The new education tax break expanded the existing Hope Credit, providing a credit of up to $2,500 of the cost of qualified tuition and related expenses, and up to $1,000 of the credit could come back to the taxpayer as a refund.” This is awesome because of the fact that many Americans are looking at going back to school or are already in school. As the economy continues to struggle people are looking for ways to make money and one way to do that is by going back to school and getting educated in a different field so that they have more job opportunities.
Education is important and having knowledge of different fields is definitely a way to re-boost your job field. The government is helping you do that by giving you a tax break on your education.
One thing about taxes that concern everyone is how private they are. They involve lots of personal information. It contains information that if in the wrong hands it could be extremely dangerous. Tax information falls along the lines of asking someone how much they make per month. Its a very sticky subject that shouldn’t be approached by anyone.
Tax information should always remain private. That is why I personally prefer to do my own taxes at home or go to place like a local small business to help me prepare my taxes. Although online websites say that their site is secure we really don’t know who has excess to the information we put into the website besides the federal government and the IRS. I really prefer to have as few of people know my tax information and knowledge of my income as possible. It just feels safer that way.
Our health and our loved ones health is vital. We want to live for as long as possible and we want our loved ones to have the best health possible. But lets face it things happen. Ourselves or our family members could get sick or hurt and may need to end up going to a hospital. These can be trying times for us because well we care about those closest to us. But trips the hospital are some of the most expensive types of bills anyone will ever have to pay. I mean just an ambulance ride itself is extremely expensive.
There are two things that can help. One is creating a savings fund for health related emergencies. These can prove to be extremely helpful when it comes to paying for healthcare. The other is getting health insurance. Health insurance can be a life saver. I understand health insurance can be extremely expensive but when it come to it, it will be money well spent.
Health care bills can sometimes be written off as health expenses when you are filing your taxes.
When preparing your taxes look at all the different expenses you have paid for in the last year. Things like purchasing a new car, a new house, a second house, you decided to do a remodel, went GREEN, etc. All these things are very important tax time because as you prepare your taxes you will need all your tax information of what you purchased and what the cost was.
Each one of these things can be a way you can save on taxes. The government gives different tax breaks on different types of items we purchased. Say you purchased a solar heating or solar power system. Because these are some of the things the government would like us to purchase it can say you money.
I read this article today that was from 2009 by a lady named Sandi Smith. She has some very legit ways to relax during tax season. Lets face it dealing with taxes is definitely one of the most stressful times of year. So here is the article. http://accountant.intuit.com/practice_resources/articles/practice_development/article.aspx?file=ss_TaxRelax2009
I really like some of the ways she points out on how to relax. Its very interesting. One way to avoid stress during tax season is having a professional handle your taxes for you.
That’s why a place like Advance Tax Services is the way to go. We can handle your individual taxes, prepare your books for you, help your small business. Instead of having to deal with all the stress of everyday live on top of your taxes let us take a little bit of the load off and help you.
Doing your taxes is frustrating to say the least. Knowing different tax codes and what the proper forms are that you need to file when you file your taxes is definitely a pain to say the least. That is why Advance Tax Services is the way to go. We complete your taxes, you know all the forms and codes you need to file your taxes properly and we file them fast. Take advantage of using a local company.
Don’t we all know someone in our says something like that? Like “Back in my day they didn’t have the internet, we had the the United States Postal Office. We communicated through letters. None of the email of social networking stuff”.
Well times have definitely changed. Filing your taxes through the internet definitely seems like less work then filling out your taxes by hand but here the problem. You don’t know all the tax rules or different deductions that our out there now. You don’t know if you can truly meet the criteria that is need to get all those different deductions.
Trusting a professional is always the best way to go when filing taxes. They are current on all tax breaks and have extensive knowledge with all the different changes that have been made over the last year. The advantage of filing through the mail sure its time consuming but at the end of the day you know what exactly is going on in the tax world.
Filing taxes online has become extremely popular over the years but is there really an advantage to it versus sending your taxes through the mail or having a company like H&R Block help you prepare your taxes better?
Take Turbo Tax for example, filing online is safe and secure and their questionnaire style filing system is very user friendly. But here is the problem with that there are is definitely a chance that by filing your taxes online through their system you could miss a few things such as different deductions, different kinds of write offs, or even you could miss something that is vital as far as information goes.
Filing with a company like H&R Block is definitely great but again there is problems with filing your taxes through them. You are definitely likely to pay a hefty price on those your taxes. They can charge up to $150 dollars just helping you file your taxes.
If you want help think at local level and help support local business instead of hiring corporate company or using a corporate software tool to help you. By hiring locally you get the advantage of talking to someone who is on your level, who understands whats it like where you live and understands all the advantages and disadvantages of where you live.