With tax season fast approaching many people are wondering what they can do to save money on their taxes. If you constantly are owing money on your taxes each year, you should consider making some changes so that you don't get hit so hard when it comes tax season. Here are some things that you can do throughout the year to help you avoid owing money on your taxes.
1. Withhold More Throughout The Year
One of the biggest mistakes that people take when it comes to taxes is not paying enough throughout the year. If you are self-employed, you will determine how much you are going to withhold each month. This can be hard to determine since you don't know exactly how much you are going to make, so it can make it hard to know which tax bracket you will be in. In addition, those who are contracted employees can usually choose with their employer how much they want to withhold each month in taxes. Generally, if you can withhold more money each month, it increases the chance that come tax season you won't owe as much when tax season comes.
2. Be Careful About Taking Health Care Credits
If you are purchasing health care on your own and not receiving it from an employer, you will be given the option to take a tax credit. What happens is that the government assesses how many people are in your family and how much you make and then will reward you a tax credit to help keep your premium costs down. However, this is not just free money. If at the end of the year it is determined that you made more money than what you initially thought you would, you will have to pay back all of the credit that you received. For some people this can be thousands of dollars. Thus, even if you qualify for other credits and deductions, the penalty for the health care credit could be so large that you could still owe money.
3. Itemize Your Deductions
Lastly, the more deductions you can get, the more money you will save. Deductions are what help to bring down the amount that you owe. It is not money in your pocket, it simply lowers the amount of taxes that you will have to pay. So try to think of anything you have done throughout the year that can be deducted to help you save money. By doing these things you can protect your wallet come tax season.Share
15 December 2016
The laws governing child custody and guardianship can be confusing. As a family attorney, I have helped many clients gain legal guardianship over a foster child or a relative's child. Getting legal guardianship of a child you are caring for is important because you need to be able to make decisions about that child's education, health care and other matters. This blog will help you navigate the world of legal guardianship and show you how to take steps to get guardianship over a child whether the child's parents are cooperative or not. Legal guardianship does matter even if a child is not going to be adopted. I hope to help people find the way to get this done.