If you are in the percentage of people who owe every year, there are things you can do each year to break this cycle outside of paying more taxes. Nothing comes easy or free, we either have to pay or put in some work. There is no need to be stressed out about tax season, it takes a little planning and action, but you can have a stress free tax season. Below are three things, I always recommend to my clients and the results are amazing each year. They no longer file extensions or wait last minute, as soon as they receive their tax paperwork, they are in my office.
- You should know your tax credits – the most common credits for individual filers are EIC (earn income credit), Child Tax Credit, additional child tax credit and dependent credit. Remember if you are married filing separately, you cannot claim the EIC.
- Increase your retirement savings- you can contribute up to $6,000.00 per year, take advantage of your employer match program if they offer one. If you are 50 or older, you can contribute an additional $1,000.00.
- Select a health insurance plan which allow you to put money in a Health Savings Account – this is a great way to save tax free money to be used towards paying for medical care. You can contribute up to $3,500.00 if you are single and $7,100.00 for family coverage. The amount contributed can be claimed as a deduction.
If you are still feeling overwhelmed please contact us at 470-488-9820