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Ten Tips for your Taxes: Making cents of your tax return

By brass Staff on February 1st, 2006 • Taxes, Life
Originally appeared in: Spring 2006brass 10

They say there are two things certain in life: death & taxes. Here are ten tips to make one of those seem less grim. Enjoy.

  1. FILE EARLY TO BEAT THE RUSH. Plus, the IRS will process your potential refund sooner.
  2. PHILANTHROPY COUNTS. Contributions of money, time and gas to any U.S. sponsored organization are deductible.
  3. CONSIDER ITEMIZING. Itemize only if deductions exceed the standard deduction for your tax group. If you're trying to close a small gap, tips 4 - 7 are helpful.
  4. BALANCE YOUR PORTFOLIO. Made gains on your mutual funds or sold stocks at a profit? Look for failing investments you could sell to offset your gains.
  5. BE PREPARED. Not only is the cost of tax-preparation software or a tax professional a smart idea – it's deductible.
  6. LOOK FOR A JOB. If you are staying in the same line of work, job-hunting costs like printing your resume, calling long distance, and traveling to interviews can be deducted.
  7. PLAN AHEAD. You have until April 17th this year to top off your IRA and the limit is $4,000. Remember your Roth IRA is not deductible, but you'll reap the benefits with tax-free growth.
  8. PAY BACK STUDENT LOANS. The interest you pay on student loans is deductible. Even better, it is above-the-line, which means you don't have to itemize your deductions to claim it.
  9. EDUCATIONAL REWARDS. If you're in school, some of your tuition and school-related expenses, like books, can be deducted.
  10. DOCUMENT EVERYTHING. Keep all pertinent receipts and statements in case the IRS decides to question you about any of your deductions.

Sources: completetax.com; turbotax.com; irs.gov

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