How To File A Better Tax Return This Year
The tax season is a nerve-racking period, for many Americans. Any mistakes made when filing tax returns can have serious implications, for you or your business. Thanks to the diverse nature of finances and the fact that tax laws change from time to time, some people don't have a clue about what they're doing when they file their tax returns.
However, it doesn't have to be this difficult. You can ensure that tax return you file this year is immensely better than the one you filed last year.
Choose the Best Filing Status
Many people don't put a lot of thought into deciding their filing status. For example, it's understood that filing jointly, as a married couple, comes with certain benefits. However, a married couple can still file their taxes separately, and, in some instances, it might be more favorable to do this. Additionally, you may qualify to file as Head of Household for someone, if you're taking care of most of your parents' needs, even if they don't live with you.
Understand All the Tax Deductions You Qualify For
If you don't want to leave money on the table when filing your tax returns, you need to know all the deductions you qualify for. Many people, for instance, don't realize that they can deduct mileage spent driving for a medical purpose. Ensure that you're aware of any deductions you might qualify for.
Keep Track of Deductible Expenses
It's one thing to know that something is deductible and another to know how much should be deducted. You can't estimate your deductions when filing your returns. Therefore, you need to do a better job of keeping track of these expenses. This also means keeping the receipts or any other proofs of purchases.
Contribute More to Your HSA and IRA
Investing in your future is always a good idea, especially with regards to medical expenses. However, apart from contributing more to these expenses, it can also be good for your tax returns. Contributions made to a Health Savings Account and IRA will reduce your taxable income. Due to the inevitable nature of medical issues, this is always money well spent.
Hire an Accountant
Due to the diverse nature of tax law, it's difficult for many people to get their tax returns 100% right. However, hiring a tax accountant can change all this. Whether it's just advice you need or a lot of assistance when filing your returns, an accountant is the best person to turn to. For more information, call a group like Monheit Frisch CPAs PLC.