Tax season is a time when, like it or not, we reflect upon our financial decisions over the past year. Some of our choices will result in extra funds we’ll have to send to Uncle Sam, and thankfully, others will help keep money in our pockets.
While most of us don’t necessarily look forward to tax time, those who do usually feel a sense of victory in receiving a sizeable refund after taking advantage of as many tax deductions as possible. And there are many things that you, too, can do to help ensure that you aren’t paying a dime more than you have to this tax season. Here are a few suggestions to help make that happen:
Carefully consider whether you should hire a certified public accountant (CPA) or tackle your taxes on your own. If you are comfortable filing your returns on your own, especially if you have been doing them for a while and you aren’t expecting anything out of the ordinary on this year’s return, there may not be any reason to seek out professional assistance. You’ll save money doing them on your own if you’re opting for a standard deduction. But if you’re uncomfortable filing them by yourself, have changed your filing status since last year, or simply don’t want to spend the time required to put them together on your own, it might be sensible to hire a pro. A CPA can help you find deductions you may not be aware of, and will support you should you be audited.
Major life changes may come with tax deductions. If you got married, had a child, or lost your job this year, you may be eligible for certain write-offs associated with these situations.This article offers advice on some of these benefits. For example, if you became a first-time homeowner since filing your last return, you may be entitled to a large deduction for your mortgage interest – which may result in a hefty refund.
Don’t miss out on deductions you may not be considering. Many people forget about or are unaware of certain tax advantages, especially those who choose to do their own taxes. For example, if you bought property for your business, real estate commission may be deductible.This articlediscusses when real estate agent commissions are deductible, and this resource explains how real estate commission fees work.
Small business owners are wise to keep track of every business-related expense, as many are eligible for a deduction at year’s end. Whether it’s your company’s first year of operation or you’ve been in business for years, there are many deductions available to small business owners.BankRate.com provides information on some of the situations that may provide extra tax benefits, such as running your business from a home office, purchasing business equipment, and taking trips to see clients.
Tax season isn’t a time most of us look forward to, but it also doesn’t have to be one of undue stress. There are many ways you can take advantage of the tax deductions available to you. If you do your research, you may even find tax time to be financially rewarding!
Maple C. has made a career out of encouraging others to follow their dreams in all aspects of life. Her experience in the business world encouraged her to start her own blog, an inspiration hub for readers everywhere.