Tips To Save The Most On Your Taxes
It's tax season and, if you're like most people, you're probably planning on leaving it to the very last minute.
But, honestly, it doesn't take you very much time, and the faster you do it, the faster you get your tax refund (money in the bank).
A lot of people probably feel as though they have no idea what they're doing when it comes to tackling their tax return.
Here are some tips to ensure you get the refund you deserve.
First of all, don't wait to do your taxes. Follow the Nike motto: JUST DO IT.
Seriously, get it done so you can get your refund and take care of debt or treat yourself to a holiday.
Too many people wait until the last minute. Get it out of the way and get your money.
The deadline is April 18. You have plenty of time, but don't delay.
There are a lot of tax deductions you might not know about.
If you want to get the biggest possible refund, here are some tax deductions you shouldn't forget about (and TurboTax will help walk you through it):
- charitable donations
- job search expenses
- if you're a teacher and spent over $250 on materials
- if you paid a babysitter while volunteering
- unreimbursed business expenses
- unreimbursed medical expenses (depending on the situation)
- if you pay a high local tax rate
- home office expenses (something to think about if you're working from home)
- disaster recovery (if you had to make repairs after a natural disaster, for example)
- part-time workers who work more than one job (cost of getting from one job to another)
If you think you qualify for any number of these deductions, but aren't sure how much you spent, look at your bank records and receipts (this is exactly why keeping receipts is so helpful and not just useless hoarding).
Young people: SET UP A RETIREMENT PLAN.
Contributing money to a 401k might not be appealing in the moment because it makes your paycheck look smaller.
But in the long-run, it pays off big time (if you don't know what compound interest is please look it up right now).
Also, the amount you contribute to your 401k is not included in your taxable income, which can help a lot more than you might think.
Long story short: Saving your money for retirement has both short and long-term benefits.