How To Save On Your Taxes
Many people focus on how they can save money on their taxes. However, there are many steps that families can take to help keep their tax bill low. Keep these tips in mind to find out where you can save on your tax bill.
- Work – if you got a lot back on your taxes, it may mean that you are getting too much taken out of your paycheck each pay period. File a new W-4 form with your employer, or talk to your payroll office, to make sure that you are taking home the right amount of money each month. If you are your own boss and work from home, make sure to deduct any of your office expenses from your taxes, which can include home maintenance costs and utility bills to keep your home office running properly.
- Home – if you are planning on selling your vacation home in the near future, convert it to your primary residence. When you well your primary residence, you are able to take up to $250,000 worth of the profit from the sale as tax-free month. A home has to be your primary residence for at least two years in order to qualify for the tax break.
- Donations – while you are doing any type of charitable work, keep track of every expense that you have. The cost of the ingredients to make a casserole for the homeless or the cost of stamps when you mail out flyers for a fundraiser.
- Medical expenses – if you make any improvements to your home that are medically necessary, such as installing a wheelchair ramp or widening a doorway, keep detailed records since that amount can be deducted from your medical expenses.
For all of your tax preparation needs and to ensure that you are able to save as much as possible on your taxes, contact Phocus Companies in Phoenix, Arizona.
