Accounting: Getting The Most Out Of Your Tax Return
It is the end of the financial year and everybody has the the same thing on their minds-- tax time. Everyone starts preparing their emails and receipts for donations and other evidences that can help increase their chances of a higher deduction to their taxable income. Here are a few reminders that you can use in getting the most out of your tax return.
Donations are tax deductible
At this time of the year, everybody searches for their receipts and emails that prove their donations throughout the year. If it is not yet late, consider sharing even a small amount for donation to help your increase deductions of your taxable income.
A suggestion for next year: Why not consider tapping your inner philanthropist, get structured and revisit your philanthropic goals. You might want to support a cause through your business or to spend for other charitable institutions while seeking out information about the tax benefits that goes with it.
Be aware of how you can reduce your taxable income
Everybody waits for their tax refund as if it is a bonus that is due to them. They plan on spending them on travel, vacation, or other recreation. However, if you have some payables or mortgage, why not use this 'tax refund aka bonus' to pay a non-deductible debt so that you can free yourself of the mortgages in the future?
Having been aware of various ways that can reduce your taxable income, use the knowledge into practice so that by tax time, you don't have to worry much. Research on more ways you can save and increase your tax returns for the financial year or for next year.
Contribute to retirement accounts
Learn when you can make a deductible contribution that can help lower your tax bill and save money in the process.
Claim deductions for a home office
If your job requires that you do some of your work at home such as being in a formal teleworking arrangement, you can claim for a deduction of a certain amount of your running costs and equipment.
Take advantage of tax break options
Sometimes, generous tax break options for small businesses are offered by companies. Your local accounting firm will be able to advise you on this. Notable examples include being able to deduct purchases of up to $10,000 in your tax return. Don't spend on a spree but try to find means and ways that you can have your expenses deducted from your taxable income.
Keep and claim small purchases
Purchases below $300 can be deducted to taxable income if one is not self-employed. Make sure your bookkeeping is in order so you catch these purchases during tax time.
Delay income opportunities
If you have an incoming salary or revenue, delay it so that you can claim it the next financial year and that means you won't be taxed on it this year.
There are other ways of getting higher deductions on your taxable income and it is never too late to learn them and start preparing for next year's tax return. If you have any questions or issues that you get stuck on simply contact a tax accountant near you. Ask knowledgeable people, browse the internet and learn from others on how you can get the most out of your tax return.
Empire Tax Professionals, Inc. 5 Pennsylvania Plaza #2325, New York, NY 10001 (212) 300-5776