It’s that time of the year again. Time to bring out the calculator, bank statements, the folder with all your investment receipts and everything else needed to do the one thing that cannot be put off for later….file your Tax Returns!
Adam Ginsberg, one of the foremost authorities on wealth building and internet entrepreneurship offers some useful, practical tips that could save you time, and possibly, some money too!
Tax Tip #1
Don’t leave it to the last minute
Here’s a last minute advice for all those who are waiting for the last minute to file their tax returns. It may not be a good idea to leave filing your tax returns till April 15th. As it often happens, you may miss out on saving some tax by forgetting to attach a deductible expense or by some other foresight. While it may be late for this year, you could start early in the next. Filing taxes and financial planning are very important for every earning individual and should not be treated as low-priority chores. Instead take out a few days in the beginning of April (take off from work if you have to) and get your tax filing paperwork in order.
Tax Tip #2
Get Professional Help
It is always a good idea to take the help of a professional tax preparer to prepare your returns if you fall under a high tax bracket. There are many provisions in the tax law to reduce your taxable income, and hence your tax liability. Besides a professional tax preparer will be updated with the latest revisions in the tax law, which will help you in filing your returns more accurately.
Tax Tip #3
Invest to Save
If you fall under a higher tax bracket and suddenly realize that you could save some tax by making a few investments, then go ahead and do it while you still have time till April 15th. The best investments are in an Individual Retirement Account (IRA) that can help you reduce your taxable income by $5,000, and in a Health Savings Account (HSA), which can reduce your taxable income by $6,250 on a family policy. Again, get in touch with a professional tax advisor to explore more ways to save your tax liability.
While these tips may be of some help for the last-minute filers of tax returns, you could also use them to start early for the next year.
Check this space for more tax tips from AdamGinsberg…coming soon!