The last thing on your mind in September is to file your taxes. Depending on your situation, it can involve a quick, simple visit to your tax professional and after a few minutes you’re done. However, most people don’t take the time to take inventory of their deductions or even pay careful attention to their tax professional in Parkland. You may be surprised how much money you’re throwing away. But there are plenty of things you can do between now and April 15th to save money. But you don’t have to be an expert in accounting services in Parkland. Here are some quick tips.
One of the first steps is to compare your itemized deductions and your standard deductions. By increasing your itemized deductions, you’ll have a better chance to save money. If your itemized deductions are about the same for 2014, you can move some of your deductions to 2015. This gives you more flexibility to itemize more.
Another method is to add to your retirement savings. This helps reduce your taxable income. You can contribute as a much as a $17,500 to a 401(k) or another retirement saving plan. If you’re over 50, you can contribute up to $23,000 by the end of the year. The money contributed is not included in your taxable income. Placing money in a Roth 401(k) can diversify your taxable income for retirement. Once you’ve reached retirement, money taken out of the Roth 401(k) is tax free, compared to other retirement plans which will taxed in your top bracket.
Unfortunately, not everyone has a retirement plan. But if you have money you’d like to augment to your savings, you can always place it in an IRA. Depending on whether you participate in a retirement savings plan at work and your income, you can forgo a tax break and contribute to a Roth IRA. You can then start taking tax-free withdrawals in retirement. Here are some other quick suggestions:
- Keep track of your job hunting expenses. This includes travel expenses, cost of food, lodging and transportation.
- If you’re living the green lifestyle, you can be eligible for a tax credit. This includes homeowners who have solar electric system, solar water heaters or geothermal heat pumps.
- Make charitable donations
- Plan your wedding near the end of the year
Friedman Accounting Inc. provides more than just tax services in Parkland. Marc and Matt Friedman also offer payroll, property management as well as accounting services in Parkland. When it comes to filing for your taxes, don’t procrastinate. Do your homework now and get ready to save money come next spring. To find tax services in Parkland, call the professionals at Friedman Accounting, Inc. at (954) 752-3889.