tax saving strategies you may have to ask for.

After nearly 20 years, I am still amazed when new clients walk into my office, and get excited over the questions that my staff and I ask them to help find additional tax deductions for them. Which just goes to show that what I have learned still may not be common knowledge, even if I think that it is. so I thought I would take a moment to post just a few common tax savings tips that many of our clients never knew about.

• Make money with your hobbies- Having a hobby that makes you money may qualify you for several small business deductions on your personal return and open up a rather lenient group of loopholes that someone who only makes money working for someone else would not be able to take. Most of my clients are very surprised to find that some very common personal expenses, under the right circumstances, can be converted to business expenses and used to reduce their tax bill.
• Itemized deduction - nearly everyone knows that medical expenses may be tax deductible, but few people know that personal property taxes and tax preparation fees are tax deductible, just to name a few. The average tax payer under utilizes their personal tax deductions by 67%. That is 67% more of your money that you are allowing the IRS to keep than is required. While I agree that some tax returns may be simple and not require the assistance of a professional, asking a professionals advice will at the very least give you a little insight on what to look for in the coming year. Find a tax professional that will consult with you over the phone, most competent professionals will take 15 or 20 minutes to speak with you over the phone at no charge to answer questions. If you would like to spend some time being proactive about the coming year, then make an appointment to meet face to face and begin planning. The cost of this consultation is usually nominal and well worth the savings that you receive on your tax bill.
• Selective credits - The IRS has passed several new bills and extended several other existing bills to allow a credit for specific expenditures. nearly half of our new clientele this year were able to take the education credits allowed by the government for full and part-time students. More surprising to them was the fact that they had been eligible in the previous years for the same credit. The education credits are available to all students attending at least part time and reduces the tax payers tax bill by up to $2500.00. Residential energy credits are another highly over looked credit available to home owners who upgrade their home structures and specific appliances to qualified energy efficient structures and appliances. If you qualify, this underutilized credit could save you up to $1000 on your tax bill.

I am a firm believer in life long learning, especial developing your financial intellegence, take the time to find as much information as you can about your finances and how to take control of them. Seek out professionals who will go the extra mile to find the most beneficial strategies for you and do your homework.

Your professionals are there to assist you, but ultimtely you make the decisions for your future. Make it the future of which you have always dreamed.

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