Tax time is here – don’t get caught in the rush
Best ideas to save money now on your taxes:
1. File with a computer – you may even qualify to have the IRS pick up the tax for the online filing software and e-file ! Using a computer let’s you test different scenarios. Find out how much that IRA will save you before you take the plunge.
2. That leads me right into a great way to deduct money and keep it at the same time – IRA . If you do not think your nest egg will be large when you retire then think of a regular IRA not a ROTH so you can deduct it now. The per person limit is $ 4,000 in 2007 that means up to a $ 8,000 deduction for a couple that can change your refund in more ways than one by lowering your AGI.
3. Kids count even if they can’t add or subtract ! Thats right they count for more than your exemptions they also count for the Child Tax Credit and also the Child and Dependent Care Credit and Earned Income Credit. Be very careful to enter dates correctly for children because that can effect whether they will qualify to save you money.
4. Watch for carryovers such as prior years capital loss carryforward and charitable deductions that exceeded the annual limitation.