Categories
Personal Finance

Remember your tax deductions and you’ll probably get money back after filing your taxes

If you’re getting ready to file your taxes, there are a few things that you need to consider regarding your deductions. First of all, make sure you file them properly! While it is a little bit of extra work in some cases, by doing your homework, you can save yourself some extra money. Make sure that you find out which deductions apply to you!

There are two different ways to file your deductions, either you can go with the standard deduction, or you can itemize. Which one you choose depends on your own financial situation. If you’re not sure, you might want to do the math and find out which deduction plan will end up saving you the most money.

For most people, the standard deduction will be sufficient. In this case, you won’t have to worry about filling out all of the independent exemptions. You should file the standard exemption if you did not buy very much that is considered deductible from your taxable income, or if you have a particularly simple financial situation. Just file the standard deduction, and you might even end up getting money back from your taxes after they’re filed.

However, if you have a lot of possible deductions, it is probably worth your time to file the individual exemptions. You can do this by going through the list and discovering which deductions apply to you. Then you’ll need to go through your finances and figure out how much money you spent on things that can be exempted from your taxable income. This might be somewhat difficult the first year that you do it, due to the fact that you’ll need to keep receipts in order to figure out how much you can claim.

Some of the lesser known itemized deductions include things such as medical deductions. However, keep in mind that you can only deduct medical or dental expenses if they are more than 7.5% of your total income. If you have a sizeable medical bill, however, you should definitely take that deduction. You can also deduct your state sales or income tax – or even your property taxes. You can also deduct any money that you give to charity, or deduct your education expenses.

Make sure you deduct the right things and itemize when needed in order to save money during tax season!