Monday, January 9, 2012

How to Save Money on Your Taxes

With the holidays over, many are looking for quick ways to recover from the excessive spending brought about by the holidays. While refusing to leave the house for the next 3 months and pulling out title loans are always options, they aren't always the most fun or feasible.

Instead of living life to the frugal extreme, many quickly file their taxes so that their refund can get their savings back in the black. However, simply filing your taxes isn't always wise. An improper file can actually cost you thousands of dollars. So before you file, see if you can't write a few of these deductions on your taxes to increase your refund:

Charitable Contributions

You don't have to donate money in order to write off dollars under charitable contributions. In addition to any monetary contributions, you can also write off a percentage of your mileage spent while driving to and from your volunteer destination.

Moving Expenses

If you've had to move for a job in the last year, you just may be able to write off those moving expenses. As long as your new residence is over 50 miles away from your previous residence, you can write off the moving vehicle, gas, and many other moving expenses to increase the amount you can get back.

Student Loan Interest

If you are paying on those student loans still, you may be eligible to write off the interest paid on those loans. In order to be able to write off the interest paid, you have to have paid more than $600 and you should receive a 1098-E form from your lender with the exact amount of interest paid that you are allowed to write off.

Job Searching

If you are like countless Americans, there is a good chance that you spend time job hunting. While not all searches are always fruitful, you can actually write off the expenses that you procured while job hunting.

Medical Expenses

If you have had to pay a high amount in medical expenses this last year, you may actually be able to write them off. However, to qualify, your medical bills must be unreimbursed and must exceed 7.5 percent of your adjusted gross income.

Filing your taxes always seems to be a daunting task for anyone. However, with a little know how and all the right receipts, you can easily file your taxes and get your refund quickly in order to get your finances back on track in the new year.

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