Taxes are the necessary evil of our daily lives, but while there might be different opinions and arguments throughout your country on how the tax money is spent by your government, there is no doubt that the common of goal of all tax-payers is not to pay more than they owe. There are several strategies you should keep in mind in order to effectively prepare your tax payment and make the whole process as stress-free as possible and friendly for your wallet.
By all means necessary
First, but often overlooked thing is the way many people file for their taxes, this is mirrored in the fact that many married couples file for taxes jointly. However, when trying to get a cheap tax return, filling jointly may not be the best option. The reason behind this is that a percentage of adjusted gross income is taken to determine whether any deductions can be applied such as medical or other varied expenses. With that in mind, filing for taxes individually, even if you are married, will provide both you and your spouse with a lower “adjusted gross income”, and in that regard, yielding in a better tax return.
There are, however, some important factors to take into consideration. You should always do a full calculation of both joint and separate tax filing and see which one proves to be better, as certain benefits available to joint filers may be lost, so weighing out your options is the safest bet.
The next important factor when trying to achieve a cheap tax return is the total amount of tax deductions that can be applied for your benefit. Although meticulously logging your volunteering or every visit to the doctor seem like a daunting task at first, all those miles traveled will work for the support of your claim as long as you have parking toll, bus and taxi receipts to prove them. Therefore, decent travel records can prove invaluable when reaching that needed minimum threshold of adjusted gross income for tax deductions.
Finally, timing in all things is a significant factor, and tax refunding is no exception. You can quickly feel the benefits of carefully tracking the dates on your calendar and filing for taxes in order to insure the largest refund possible. An example for this would be paying your due January mortgage before the 31’s of December and in that way, you will insure added interest for your mortgage deduction. By planning accordingly and careful thinking you can assure great results in this tax-driven world.