Save Your Hard Earned Money at Tax Time….Great Tips To Reduce Your Tax and Take The Stress Away
FREE Tax Savings Tip Guide
Free Yourself From The End Of Year Financially Worries and Learn Some Great Tax Saving Ideas.
Dread Income Taxes No More - Money-Saving Strategies Abound by Ron Finkelstein
Most people hate tax time each year. They feel that they are over-taxed on their pay checks each week with items such as federal, state, Social Security and Medicare taxes. When tax-filing time comes they feel totally overwhelmed and a lot of people face paying taxes that are a heavy load to carry. No wonder many people are depressed thinking about filing their taxes.
Even though taxes can be boring and tedious remember that there are some tax regulations that may benefit you. Be aware of all the possible tax deductions that are available and see if you are qualified for any of them.
There are some deductions that let you take some of your financial output off your reportable income and some give you the right to not report certain income at all.
Income Tax Deductions and Tax Credits
There are currently five items that can be considered 'tax-advantaged' because they get special treatment in domestic tax regulations:
- Tax exclusions or tax exemptions are examples of tax-free income, which is obtained without any tax concern. Often, tax-free income need not be reported to the IRS.
- Capital gains are profits you get from selling or exchanging property that has been held for at least a year or more. These capital gains, which are considered long term, will be subject to reduced tax rates, in comparison with taxes for other types of income, like salary or income from interest. Regular stock dividends, as well as stock mutual funds, get taxed with the same lower rates as capital gains.
- Tax-deferred earnings are income that is not taxed at the present time. However, you might amass a greater wealth as time passes, since your earnings are not being reduced by current taxes. However, that money will be eligible for taxation eventually.
- Tax deductions are the amounts you will be able to take off of your income so that the amount of your income subject to taxation is reduced. There are two deduction classes available currently. One is "above the line" which means the amount is subtracted right from the gross income. The other one is that which you can claim if you prepare an itemized statement instead of the standard deduction, which will be explained later.
- Tax credits can be used to offset one's tax liability. These exchanges occur in a dollar-for-dollar fashion. Frequently, however, you will be required to complete a separate tax sheet for each credit claimed.
You can get your taxes done easily and quickly, while decreasing the amount of your money that goes to Uncle Sam.
Learn How to Deduct Mileage for Commuting and other hidden Tax Deductions and Credits that can save you tons of money.
Ron Finkelstein is NOT a Tax Attorney or an accountant. He is merely a small business owner who has paid a lot of money over the years to learn a whole lot about Taxes and Time Management. Read more of his Income Tax Articles at Free-Reprint-Articles.com