I am not one of those people who is looking to get as much money as possible out of Uncle Sam during tax season. At the same time I’m not one of those people who would like to give up all I have earned to them either. Here are a few things I check before mailing off my taxes.
One of the ways that I save money on taxes is adjusting my income. There are many things that qualify as a deduction. When I have been self employed I adjust my income by using line twenty seven on the 1040. It helps deduct a part of my self employment tax. In the same general area of the tax form there is a place to adjust income with tuition fees, student loan interest, or even educator expenses. These lower the amount of income that is taxable and thus leads to lower taxes.
There are two types of deductions. There are standardized deductions and itemized deductions. Unless the amount of your itemized deductions is more that the standardized deductions it is better to go with the standard rate. They even put the deduction amounts on the top right side of the the second page of the 1040 with regard to filing status.
The amount deducted from taxable income can also be helped by using the right filing status. Are you a single mother? If you are the main provider of your children you may qualify as head of household. Or perhaps you are going through a divorce. It’s still best to file married filing joint, if you can get along well enough with your ex to split a refund or payment.
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