Here are some Terrific Tax Tips compiled from online resources to help you minimize the sting of tax season and perhaps manage your money more wisely:
1. Invest in your retirement
You can shelter some of your income by saving it in a tax-sheltered retirement account. You’ll reap the benefits of a reduced tax bill, plus a nest egg for your retirement years.
2. File your taxes electronically
It’s easy to file your tax return online. Your return will be processed more quickly, and if you’re owed a refund, you’ll have it in your pocket all the sooner!
3. If working with a tax preparer, never sign any blank form
Read all forms in full before endorsing them. You are the customer, and accordingly entitled to an explanation for anything you don’t understand
4. Consider Charitable Contributions
Donating cash, vehicles, clothing, household items or other goods is a great way to get a tax break and help a worthy cause at the same time. To ensure you receive proper credit, always get a receipt for any donation.
5. Avoid getting a tax refund
While getting back a large tax refund may feel good, it’s actually a sign of poor tax planning, essentially giving the government an interest-free loan. While that money was sitting with the government for 12 months, it could have been earning you interest in an investment.
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