Every year, you gather all of your necessary documents for your taxes and hand them over to your preparer. Unfortunately, in past years, you have not received all that much of a return, and you would really like to change that situation this year. Well, you cannot make money that isn't there suddenly appear. However, you can follow these tips to receive the most amount of money you possibly can.
Pay Self Employment Tax on Time
When you're self employed, you generally need to send in your taxes on a quarterly basis. Some people choose not to do this, and they really put themselves in a bad situation when it's time to do their taxes. Instead of receiving any money back at all, they actually owe huge sums to the government. If you are paying the exact amount you owe each year, then it is unlikely you're going to get anything back. However, the taxes of your spouse, or taxes you make at other jobs, might help to offset that. If you don't pay your self employment tax during the year at all though, you are simply going to owe a lot of money.
Don't Forget Deductions for Working at Home
Do you work at home, or do you have your own business? In both of these cases, you are able to deduct a number of your business expenses. For example, let's say that you pay a certain amount of money for the Internet each month, and you primarily use the Internet for work. You're then able to deduct a portion of that amount. Furthermore, individuals who have purchased all new furniture to put together their home offices can deduct these items as well. Do not forget about gas that you need to get to freelance assignments, heat and air condition that are necessary to keep the home office liveable through the year and so forth. Speak with your prepare to figure out exactly what you can take off.
Remember All of Your Charitable Contributions As Well
Here is another area that you can deduct. Remember, the more deductions you have, the more likely you are to receive some money back after your taxes have been filed. You should be keeping receipts throughout the year of your donations. Otherwise, you could be audited, and you would not have anything to show for these claims. Any charities to which you can donate can be put on this deductions list. Furthermore, you can deduct clothes that you have donated or other items you have donated from your home. Do you attend a church, temple, mosque or other religious house of worship on a regular basis? It's likely that you contribute some amount of money to this establishment, so be sure to include that on your taxes as well. Remember, keeping that record is really important because you might forget all of this information by the end of the year.
The Cost of Education
Are you currently attending school, or do you have a child for whom you are paying at attend school? These can all generally act as deductions as well. If you are paying for a child to attend private elementary, middle or secondary school, you are likely going to be unable to receive a deduction; these are usually reserved for the university level. However, you should at least ask. Remember, do not only consider the amount of education. Books and other materials that are necessary for the learning environment, such as a computer and printer, can often be counted in this total. As long as it is legal and legitimate, there is no reason you can't include them.
Using a Professional
Another way that you can maximize the amount you receive back on your tax returns is to hire a professional tax preparer. Yes, many people successfully accomplish their taxes by themselves, but they may be unknowingly cheating themselves out of money as well. Tax preparers know all the ins and outs of the business, so they are able to help you craft a plan that is right for your family and your needs. Furthermore, many of these preparers also work in other domains in the financial world. If you have made a few mistakes with your finances in the past and want to get in better shape for next year, a preparer can really help you to accomplish these goals.
"In this world nothing can be said to be certain except death and taxes." ~ Benjamin Franklin
You might feel as though taxes are constantly coming out of your paycheck, and you even wind up having to pay more at the end of the year. Instead of feeling like this for another year, use these ways to maximize the money you get back now.