Take Time to Find Your Tax Deductions!
Clearwater FL - Tax time is just around the corner, so you will be putting together the data you, or your tax preparer, will need to prepare your tax return. While assembling the data you can dig out information to help you keep more of your hard-earned money! Here are seven tips you can use to add to your tax deductions and SAVE when the return is filed.
1. Donations to Charity: Donating cash, property, clothing, household items or other goods is a great way to get a tax break and help a worthy cause at the same time. If you donated cash to an eligible charity this year, you can generally deduct up to 50% of your total income when you pay your taxes in April.
Important reminder: Under the newPension Protection Act, as of January 1, 2007 you need a written receipt for all charitable donations, regardless of the amount. So make sure you save receipts so you can take full advantage of your charitable giving.
2. Deductible Expenses: Do you have medical bills, state and local taxes, mortgage payments, or property taxes? If so, any payments you made before December 31are deductible on this year’s tax return. Making an extra mortgage payment or paying off outstanding dental or medicalbills is a great way to offset your tax bill. Just make sure you aren’t subject to the Alternative Minimum Tax (which generally applies to high-income or upper-middle income households) and that you plan to itemize your deductions.