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by
Hien T. Do
Retirement plans and education plans are not the only way to save
money. You can save by claiming all your deductions and itemizations
on your income tax return. As a matter of fact, everything you
can deduct is spelled out in all the tax laws. But most of everything
is simplified in the pamphlets and forms furnished by the Internal
Revenue Service (IRS).
The
important thing to remember is that you must have proof of all
your claims on your tax return. "Proof" are forms given to you
by mortgage companies, receipts or processed checks for donations,
and in some cases (stipulated in the instruction book) a continuous
list of donations that you make, recording small cash donations
you gave to authorized charities.
Of
course, this all takes a little planning from the beginning of
each year. Planning will be easy if you become thoroughly familiar
with the tax instruction booklet and the forms. This will help
you identify what items are tax-deductible (e.g. Did you know
you could deduct the ownership tax portion of your auto registration?
If you donate household or personal items such as used clothing
to a service organization, up to 10% of original price can be
deducted.).
Even
if you have your taxes done by a professional, it is still necessary
for you to save all pertinent receipts, processed checks, and
lists.
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