If you are looking to save money on your tax returns this year then go through the practice that you adopted in the previous years, you may have missed a trick or two. Here are some of the tips to help you in your tax saving.
- Itemizing your deductions may be a good option in some cases
Itemizing is an obvious choice for people who have big mortgages and people who live in states where they have high taxes. On the other hand if your state is a low tax state then you don’t need to go through this practice.
- File the proper status?
It is interesting to note that a large number of tax payers get their status wrong, especially single parents, caregivers and widows. For example single parents tend to make this mistake by declaring themselves as single which makes them fall in a different tax bracket.
Declare your clear status so that you may be able to take advantage of various levies given by government for such elements of society.
- Carefully handle tax returns when filling a joint tax return with your spouse?
Be very careful, not to hide anything while filling a joint return with your spouse. If anything remains hidden it can backfire. You can save penalties by making sure that your spouse has not filled anything that goes against the facts that you have stated in your returns.