Understanding deductions and other tax breaks
>Taxes: General Deductions
By itemizing your deductions, you can subtract many nonfederal taxes you pay from your federal income. The less income you have, the less you owe Uncle Sam. Take a look at how you can reduce what you owe the IRS.Weddings, Kids, Homes: Taxes for Life's Big Events
The tax code can be very beneficial if you know how it applies to your personal circumstances so you can take advantage of it. Read on to learn more about tax breaks for life's big events.
Take the Standard or Itemized Tax Deduction?
Tax deductions reduce your taxable income. And less income equals a smaller tax bill. So what's the best way to reach the smallest possible taxable income level -- with a standard or itemized deduction?Taking Advantage of Miscellaneous Deductions
Every tax season, frantic filers search for ways to reduce the checks they must write to Uncle Sam. A proven tax strategy is deducting as much as possible. These catch-all expenses offer another way to cut your tax bill, but only if you have enough of them.Maximizing Your Medical Deductions
Medical costs seem to increase every year. There is a way to get Uncle Sam to foot some of the doctor bills, but you need to make sure you know and follow the rules.Be Cautious of these 6 Popular Tax Breaks
These moves can cut your tax bill, but you have to read the fine print to make sure you qualify.10 Overlooked Tax Breaks
You need to take every tax deduction, credit or other income adjustment you can. Here are 10 tax breaks. Some for itemizers only, others that any filer can claim that often get overlooked but could save you some tax dollars.Don't You Dare Deduct These Expenses!
There are some deductions you should steer clear of. If you claim these wrong write-offs, you'll deduct expenses that don't meet Internal Revenue Service guidelines. Bankrate has put together this list of expenses you might be tempted to claim.
Get your biggest tax refund. Start free at TurboTax.Special Deduction Amounts for Tax Payers 65 and Older
Some older taxpayers may be able to cut their tax bills with very little work. All they have to do is check a couple of boxes on their tax returns.Bunching Itemized Deductions
You always seem to have a lot of expenses that you think could help cut your tax bill if you itemized. But every year, they go to waste. Get around this tax-reduction roadblock by bunching your expenses. It may be too late to help cut your current tax bill, but by setting up this strategy now, you can ensure that your "nearly" deductible expenses become full-fledged tax breaks next filing season.Home Sweet Homeowner Tax Breaks
Congratulations, you've just taken another step up the American-dream ladder and are a homeowner. Along with the joy of painting, plumbing and yard work, you now have some new tax considerations. The good news is you can deduct many home-related expenses. The bad news is, to take full tax advantage of your home, your taxes will likely get more complicated. In most cases, homeowners itemize.
Are there areas of your financial life over which you wish you had more control?
Subscribe to Financial Independence and start working towards achieving your financial independence.
More Money Tips & Tools
- Why smart people are poor
- Understanding mortgage APR and interest rate
- Do I need a stockbroker or a financial planner?
- Saving-money secrets of the rich and frugal
- 5 low-risk ways to earn higher interest now
- How to save money fast
- 7 IRA withdrawals that don't trigger a penalty
- This week's Readers' Tips