In honor of income taxes being due today–I thought I would take some time to discuss family finances and the IRS. While it may be too late to look at this year (unless you are due a refund, or have a filing extension) it is never too late to look at in preparation for next year.Mind you, I am no tax pro, or legal substitute for tax information. So please, remember to discuss any issues you see with your personal situation with the necessary experts!Itemizing is more pain than it’s worth for many families, but just because you didn’t do it this y
ear, doesn’t mean you should ignore the option next year. You can deduct health insurance premiums, co-pays, and many medical expenses. While there are plenty of other things to deduct, you should study up on these as your situation and tax laws change often. You may be able to take advantage of more!Starting college? If you or anyone in your family is currently enrolled or planning to enroll in higher education, you can take advantage of tuition credits, even if it is paid through federal aid. This adds up to $2000 to your return! Looking at credit possibilities this year will help you prepare for the things you want to do for credits next year.If you make less than $30,000 gross you qualify for free federal filing! And, your state may allow free filing, too. Many people are unaware of this, as I just found out in 2006. That $200 filing fee for H&R block that I saved has made a big difference. While I lost out on Rapid Refund options, I still had it within two weeks!Keep track of all your receipts, because you never know what may come in handy. While your groceries do not matter, something purchased with them on the same transaction may be deductible! I learned this quickly because my printer ink used as a business expense was purchased with a bean burrito from Wal-Mart. Keeping that receipt will remind me of the $25 deduction that I otherwise would have lost…and while it is not much, it may make a difference when the final numbers are crunched!
Check out the IRS Website for more information. Photo Credit of www.upgradetravelbetter.com/2007/09/
Here’s to getting more of our own money back! Share your tax tips and tricks below.
Ooooh, filing taxes … not my favorite task. We’re filing an extension this year because I’m waiting for my son’s social security number to arrive. This means we get to extend the fun!
I calculated our taxes each year and only last year did itemizing make financial sense for us, when we were paying interest on two mortgages over the course of the year. As far as medical expenses, you can only deduct them above a certain amount … for us, we had to spend $10,000 on medical needs before we’d see any benefit from a deduction.
Yes, I loathe filing too! I cannot afford the medical expenses in the first place, so deducting them is impossible for me. I have never itemized before, but I see it in my future!
Thanks for sharing your experiences.