Here are 7 Great Tax Tips to Remember:
1) Many people don’t realize this, but you are not obligated to take the Standard Tax Deduction. If you have the time, and a tax calculator, you can itemize your deductions to determine if the new amount is higher than the original. We recommend going with the larger one.
2) Retain Tax-type records for 3 years minimum. We recommend more. If you do not have a file folder that you drop everything related to taxes into, you may be creating big problems later on for yourself and your family.
3) Re-visit your last tax return. There might be deductions and credits that you didn’t take advantage of. Okay, it’s a pain for sure. But we know lots of people who jump all over this. It’s free money for time well spent.
4) You may be new to this, but you can deduct the amount you paid for your previous year’s tax preparation. This also includes any learning you did in relation to your taxes. Did your read a book, attend a seminar, or sign up for a paid newsletter? Go for it. Deduct them!
5) Charitable donations are deductible, of course. A smart person will keep all charitable receipts, but the IRS actually only pays attention to the ones for $250 or more.
6) Think Long-Term. While short-term investments will meet a normal tax rate, anything held over a year gets squeezed for only 15%! The longer the better.
7) Make sure your W-2 forms match up dollar-for-dollar with your paychecks. Even your super employer can make occasional errors.
We’ve got some other things to help you out. We have an FAQ page to answer some more of your questions, or you can just call us at 586-228-2530 right now in our Clinton Township office, or 248-674-2312 in our Waterford Township, Michigan office!
Thinking about starting a small business? We’ve got you covered there, too. Get some of our insight on what it takes to maintain a small business financially.