Tax season is one that many of us dread. However, the end is in sight and the reward is hopefully near! Financial Advisor, Laura Foos, says these five tips can help make the most of your money.
1. Choose the right filing status
It's important to use the correct filing status when filing your income tax return. Even if you are trying this at home, try finding the best option that will benefit you.
2. Itemize deductions instead of using standard deductions
If you take the time to fill out itemized deductions, there are a lot of expenses that could benefit you. Although it does take extra time finding those old receipts, it can be in your best interest to go through the hassle of itemizing your deductions.
3. Know the tax credits you qualify for
Make sure you know the difference between a tax deduction and a tax credit and file accordingly. The lower your taxable income, the lower your tax bill.
4. Claim qualifying children & relatives for exemption
There are more people besides your children that you can claim. If you have other family members you are currently taking care of and providing for, you can claim them as a dependent on your return. This is another way to bring down your taxable income.
5. Contribute to your retirement savings accounts
If you make contributions to retirement savings plans, not only is that tax free money, but there's also a savers credit depending on income limits, which is a good thing to look into as well.