Tax Tips for Do-It-Yourself Tax Filers

Many folks utilize professional help when preparing personal and commercial taxes Aurora IL. If you prefer to do them yourself, you might like a few tips. Here are a few quick and simple tips that will keep more money in your wallet.

Save Money Each Year WIth These Tax Tips

Here are some common ways to save money when preparing your tax filings:

  • Organize Your Information. You’ve been through tax season before. So why not make this coming year different? Organize and plan ahead now to make this season, well, less taxing! Review last year’s tax returns ahead of time to refresh yourself on the main points.
  • Harvest Capital Losses. The federal tax code allows you to deduct $3000 of capital losses against your tax burden. For most of us, this is from losses on stocks. Review your brokerage accounts now.
  • Plan Your Itemized Deductions. Did you itemize last year? If so, review what you itemized. Check and see if you will have similar line items for the upcoming year. Did something change, such as a big donation to a charity or the refinancing of a mortgage, which may enable you to reduce your taxes this year?
  • Max out on IRA, 401K, and HSA Contributions. These are great ways to help your retirement plans and health-care needs. Not only that, you will likely save money on your tax burden.

When In Doubt, Partner with a Professional

The tax code is so detailed and complicated that it is fair to say that no one can know all the tax breaks unless it is your profession. The ideas suggested above are but the tip of the iceberg. Perhaps it may be better to hire a professional tax planner for the upcoming and future tax years. You might be able to save even more on taxes than you think.