Archive for 'Income Tax Tips' Category
Income Tax - Type Your Tax Return
Don’t give the IRS any reason to believe you are unorganized or incompetent. Type your tax return, or use the computer generated forms that the IRS has for collecting your information. Make sure you present your return in the most professional manner. The other thing about making sure your tax return is not submitted in […]
Income Tax - If You Are A Gambler - Keep Track Of Losses
This sounds ludicrous to some folks, but if you are a gambler with any kind of betting frequency, keep track of all your losses over the years. Actually keep good, clean records of all your gambling losses so you can use them as write-offs on the chance you win big one day. The IRS will […]
Income Tax - Make Your IRA Contributions Early In The Year
Jump the gun on your IRA contributions and do them as early in the year as possible. Avoid making your IRA contributions late in the year or by the deadline of April in the following year. You stand to accumulate allot more money because your savings are multiplying tax free sooner EVERY year. You will […]
Income Tax - Consider A Roth IRA
A Roth IRA is actually provides a tax free shelter for your invested earnings, but you can’t get a yearly tax deduction when you invest in them. Over a long period of time however, a Roth IRA can give a bigger pot of cash for your later years. Using the same example in the last […]
Income Tax - Consider A Deductible IRA
A deductible IRA is pretty well a no-brainer as you can save considerable money over time. All your IRA contributions are will result in a portion becoming 100% tax deductible (hope that makes sense….or should I say cents), and if you like most Americans, you will qualify for a deductible IRA. A good example would […]
Income Tax - Consider A Nondeductible Some folks can’t qualify for
You can save allot of money with a nondeductible IRA. Your dividends and interest are won’t be taxed until the day you begin withdrawals in your later years. One of these IRA investments will eventually grow into a serious cash cow over an extended amount of time. Keep in mind that you will not pay […]
Income Tax - Adjust Your Paycheck Withholding Allowances
If you find that you are receiving fairly large refunds from the IRS each year, you may be able to lower your paycheck withholding deductions as per the IRS taxable income guidelines. Why not put more money in your bank account each month as long as you are giving the IRS their tax as per […]
Income Tax - Learn To Prepare Your Own Income Tax Return
I know some folks who frown whenever I suggest they prepare their own tax return, but it can be done easily if you just take a little time to look over the free IRS books and pamphlets. If you do decide to prepare your own tax return make sure you don’t do it at the […]
Income Tax - Keep Good Care Of Your Tax Records And Documentation
We have a big empty (and dry) Coca-Cola cooler that is empty save for all our tax documentation. We keep every receipt, slip of paper, cancelled checks, check stub, in the hopes we can write much of it off. This actually takes some practice and some stick-to-it-ivness. It’s so easy to lose a receipt or […]
Income Tax - Beware Of Overpaying Your Estimated Taxes
Don’t overpay on your estimated tax payments. The sum of your salary or wages withholding and your estimated tax payment are suppose to add up to 90% of your tax liability for the present year - or the sum can be 100% of your tax liability for the past year - whatever is less. If […]
Income Tax - Get The IRS Publication 17
The IRS “Publication 17″, usually entitled “Your Federal Income Tax”, can be acquired by simply calling the IRS and requesting a copy be sent to your home address or work address. You can also use the IRS web site, and/or your local state governing body to get a copy sent to you. Using the IRS […]
Income Tax - Tax Saving And Making Money Legally
Trying to save money on income tax, and keeping your money out of the IRS coffers is an all American past-time. Well maybe not as much fun as going to a game, or just hangin out doing exactly what you want all day - but it should be a passion for you if you want […]