Just another Tax Blog Post

Posted April 8, 2009 by Bernz

Well I decided to post another tax topic this week being the last week to file income taxes for most filers. Besides tax is probably the biggest unavoidable expense everyone needs to pay every year.

incometax

Here are some really basic tips which may be beneficial to you, although some of these maybe a little too late to avail of the deductions you are entitled to.

1. File Electronically – doing this will minimize errors and help you get a refund in two weeks. The tax- preparer are most likely filing e-files but you can do this yourself. The IRS has already partnered with preparers in order to provide free tax preparation and e-filing on the internet.

2. Child Tax Credit – parents can save a certain amount in taxes by having dependents. However, it is important to note that there are technical definitions about what constitutes as a “child”. In addition, if you are hiring someone to watch over a child under the age of 13, you can quality for child tax credit as well.

3. Contribute to Retirement Accounts – by contributing to retirement accounts such as 401(k) or 403(b), you can lower your taxable income. Another benefit of this is that you only pay taxes on these investments upon withdrawal. If you fall under the lower income segment, you receive tax credit as well.

4. Charitable Contributions – donating will help you get deductions. Donations doesn’t necessarily come in cash, you can donate a property or some household items to get the deduction. But remember to get a receipt for any donation.

Getting deductions is not as difficult as some believe, but please once again file your taxes correctly and on time to avoid any penalty. I myself will be paying a good chunk this year, but hey it is my obligations. Good luck!

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More on this topic (What's this?)
Debunking Bush Tax Cut Myths (naked capitalism, 7/31/10)
MORE TAX CREDITS? JUST SAY NO (THE PRAGMATIC CAPITALIST, 8/29/10)
Proposed changes to tax laws (Canadian Business Blog, 8/27/10)
Read more on Taxes at Wikinvest

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This entry was posted on Wednesday, April 8, 2009 at 5:38 am and is filed under Financial Education, Misc, Tax Reduction. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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