Your Income Tax and Deductions

Your Income Taxe and Deductions

Politicians will be debating how we got into the financial fix we are in for years, but in the meantime we still have to pay taxes. to help ourselves we can all spend less, focus on what we can control and let the big scene slip by. For example, 65 percent of tax payers use the short form on their tax return, take the standard deduction and lose money. Before doing your taxes, take a close look and see if you can save money by itemizing deductions. It’s not that hard but you do have to save your receipts. You can fill out your tax forms yourself using a current tax guide, use an online program like, (turbotax.intuit.com) or pay a tax preparer.

A few income tax expenses you can claim are:

Expenses for job searches

Out of pocket health care charges

Charitable donations

Rent for a office in your home if you have a home business (be careful with this one)

Child care while you work if you are considered low income

Moving expenses

Car expenses if you use your car in your job

Read your income tax guide for deduction information and follow the guide lines.

If your kids earns over $5,450 in wages or interest they must to fill out a income tax form, even if you claim them as dependents. If they make less they still should fill out a tax form to get the money back the employer withheld. Help the kids fill out the tax forms. It’s a good learning experience and gets them some extra dough.

Forget the rapid refund programs. A fast talking salesman might try to talk you into one of these instant options. Don’t do it. This is not a refund. It’s a loan, a high interest loan at that. The average interest is 125 percent. Don’t give these loan sharks your hard earned money. If you file your income tax electronically the IRS will deposit your refund into your bank account within a week or two.

If you get big refunds adjust the withholding tax on your W-4 form. You can do it at irs.gov. Use the withholding calculator to determine the correct amount for you. Print the new W-4, fill it out, and give it to your payroll department.

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