Benjamin Franklin once said that there are only two things in life that are certain- death and taxes. To many people, the thought of paying their taxes at the end of the year is a mind-numbing, heartbreaking prospect. To others, it is nothing less than robbery where the government “steals” their money right out of their wallets. Whether you like it or not, paying taxes is just one of the things that we have to do. There are some ways that you can get more of your money back without having to resort to cheating. Tax write-offs and credits can maximize the amount of money you will get back on your tax return, so make note of them.
Childcare and Other Child Related Tax Benefits
For parents, children are a major expense, but at tax time, they can mean refunds. For lower earning parents, there is the Earned Income Credit (EIC) which allows for a set amount of a refund per child. Some parents may qualify for an additional tax credit. They may also be able to deduct some of the costs of their childcare expenses as well. Healthcare and other child related expenses may be used to figure some of these deductions, as well as positively affect things like government stipends, financial support, education funding, and many other issues.
Many families don’t receive the full benefits form owning children when talking about government and state funding. Children are a very valuable asset for parents who are thinking about going to receive an education for themselves, or for their children. In addition, depending on living situations, marital status, where you live and how much income you receive, the number of children you have can greatly affect how much you get back form the government and insurance.
Running a Business From Home
For those lucky few who are running their own business, expenses are a necessary evil. Home businesses incur tax debts like any other business, however, there are a few deductions that can bring these tax amounts down. For instance, you can deduct some of the cost of your home office (based on square footage and purpose of the room) as well as some of your utilities. Direct business expenses which can include your supplies and equipment can also be deducted up to a certain amount. If you have to use your personal vehicle to do your work for your home business, you can deduct some of the cost of its maintenance and regular expenses.
There are restrictions and limits to each of these deductions and which situations they can be used in so it is always a good idea to use a professional to make sure that you are getting the deductions that you deserve without running the risk of violating a tax rule. Tax preparation can be very time consuming and confusing, so using a professional can save you not only time but money as well. Knowing about how to make the most and get the most support for you and your family is your responsibility; don’t miss a deduction by trying to do the taxes on your own.