Best Ways to Get a Tax Break This Fall

November 2, 2018

Paying your taxes may be something you dread, but it’s not all bad news. You may be able to get a significant tax break or refund this year if you play your cards right. By claiming deductions, taking advantage of tax credits, and re-considering your filing status, you can increase your chances of catching some relief this tax season. Here’s how you can lower your tax liability with the help of Encino tax consultants.

Don’t Forget Tax Deductions

Documenting receipts may seem tedious, but it pays off. Common deductions include:

• Charitable donations
• Certain medical expenses
• Home mortgage interest
• Mortgage insurance
• Property taxes
• Business travel
• Education to improve your career skills

Start keeping records of your expenses so you can save some money this year. Encino tax advisors can assist you with itemizing your deductions.

Take Advantage of Tax Credits

There are several tax credits you may qualify for, such as:

• Earned Income Tax Credit
• Child and Dependent Care Credit
• Lifetime Learning Credit
• American Opportunity Tax Credit
• Savers Tax Credit

• Energy credits

Don’t miss out on the savings you can get. If you’re not sure what credits you’re eligible for, use Los Angeles tax preparation services.

Consider Changing Your Filing Status

If you’re married, you may assume filing jointly is the best way to go. However, this is not always true. This is because the IRS uses adjusted gross income (AGI) to determine whether you are eligible for certain deductions. If you choose to file separately from your spouse, you have a lower AGI. This can be advantageous, especially if one if you have significant medical expenses. But filing separately makes you lose out on certain credits as well, so you’ll need to weigh the refund potential of both options.

Filing your taxes is never pleasant, but getting a refund in the mail makes it all worth it. Make sure you do everything you can to minimize your tax liability.

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