With tax season fast approaching it’s worth looking at ways you can make your money go a little bit further! Read on for five awesome tax tips for this tax season.
This is a real win/win situation when you think about it, as you’re helping out a charity while at the same time you’re writing off a small chunk of your tax deductions.
A few things you really should bear in mind before going down this road, though;
First off, the charity of your choice in this situation has to be an officially recognized, registered charity. There are ways you can check the eligibility with the Government.
You must also itemize your tax return in order to get a write-off, as well as a written record of receipt from the charity of your choice if the donation is more than $250.
Plan For Your Retirement
By volunteering to take a reduction in your weekly or monthly pay you benefit in two ways. The first and most important is that you increase your retirement fund for later in life. The second is that you reduce your tax responsibility. Extra contributions to your 401(k)s and IRA’s are tax-deductible within certain limits.
Check Your Address Details With The IRS
This may sound incredibly obvious, but there are literally tens, if not hundreds of thousands of dollars that go uncollected each year by citizens due a tax refund. The reason? The tax office has an incorrect address on file.
Paper refunds sent by mail are becoming less and less common, but it still makes sense to double check the details that the IRS has on file for you. Another idea would be to arrange payment of tax payments to be sent directly to your bank account if you’re ever eligible for a refund.
Check Your Eligibility For Free IRS Assistance
If eligible, you may qualify for free IRS assistance, which is available for people who are finding it difficult to provide themselves with the basics, such as housing & food due to IRS actions. You could also be eligible if you have had to wait longer than 30 days for the IRS to resolve a tax-related issue. Once again, it’s best to check the IRS website to see if you are eligible for such assistance.
Another very effective move when it comes to tax effectiveness is making outright gifts to family. The Government will allow you to assist your kids and grandkids to the tune of $14,000 tax-free. This amount is per person, so you can effectively gift as many family members as you like, and if you’re married both yourself and your spouse can gift the same amount each, meaning a potential gift of up to $28,000 tax-free.
As you can see, the key to managing your tax effectively is to be prepared. Preparation also helps you stay ahead of the game, avoid late fees, and being less rushed reduces the chances of making errors in your return.