During the summer no one (except maybe us) likes to think about taxes, but a little planning ahead can save you a lot of time, headache and even money later. Here are a few tips that can help you out.
Budgeting – Keeping track of what you spend can really help out when it comes time to do your taxes. Keeping receipts from donations, school supplies and other items that can be deducted can add up to some nice savings. The better records you keep the less problems you’ll have.
Research – Take a little time to get caught up on what’s going on with taxes. You can check the IRS website, read reputable blogs – like ours –hint, hint. The more information you arm yourself with, the better prepared you’ll be when it’s time to file.
Itemizing – Itemizing your deductions can help your save money at tax time. When added together, itemizing your deductions can add up to more savings than the standard deduction most will pay. Just a few of the things you can itemize include:
State and local income or sales taxes
Medical and dental expenses that exceed 7.5 percent of your adjusted gross income
If you drive your own vehicle for work, a charitable organization or are moving, tracking your mileage may help you at tax time. Just be sure to keep your receipts and write down your mileage so you’ll have the info handy when you file. Some of the standard rates for mileage in 2013 are:
Business: You can deduct 56.5 cents per mile
Moving: You can deduct 24 cents per mile you drive.
Charitable organization: You can deduct 14 cents per mile you drive.