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"Years ago, the fellow who was running the IRS at the time told Kiplinger's Personal Finance magazine that he figured millions of taxpayers overpaid their taxes every year by overlooking just one of the money-savers listed here.
We’ve added several new reminders this year and updated key details throughout this item for 2014."
My most over looked tax "credit", much better than a deduction was investment tax credits for over 62 yos , not in front me but check it out Form 8880, worth $1000's to seniors....
My most over looked tax "credit", much better than a deduction was investment tax credits for over 62 yos , not in front me but check it out Form 8880, worth $1000's to seniors....
Credits are far more valuable than deductions, but the point of the article focused on the fact that these deductions are overlooked...collectively the might be as valuable as a tax credit.
Not sure if the costs associated with bud-lite qualifies as a deduction or credit for senor, but I hope so.
Sorry I suggest something much more valuable than deductions, that 99% of the tax payers are aware of....... didn't want to ruin your "point", but nice article anyway
Many people declare 0 on their W2 which forces the maximum deduction from every paycheck. Then they get a huge refund at years end which usually gets spent on frivolous items or vacations etc.
The first thing I taught when people came to me for retirement account funding was to change that so they were close to break even on the year. The money that was not loaned to the govt. would instead go into their 401 etc. The gains on that one action alone are huge over a persons working lifetime. It also helps I still the sense of discipline towards saving for retirement.
A bit off the topic but if that is done first then they can look at other deductions.
Sorry I suggest something much more valuable than deductions, that 99% of the tax payers are aware of...
To @TB: I wanted to list the credits available to taxpayers. Familiarize yourself with these line items and if you qualify you will adjust your gross income dollar for dollar.
I started a small business this year and notice a credit for my health insurance premiums (line 29), for my hsa contribution (line 25), for the deductible part of self-employment tax (line 27), and IRA deduction (line 32). All dollar for dollar reduction of my taxable income. I couldn't agree more with tb's point on the value of a tax credit.
Comments
Not sure if the costs associated with bud-lite qualifies as a deduction or credit for senor, but I hope so.
The first thing I taught when people came to me for retirement account funding was to change that so they were close to break even on the year. The money that was not loaned to the govt. would instead go into their 401 etc. The gains on that one action alone are huge over a persons working lifetime. It also helps I still the sense of discipline towards saving for retirement.
A bit off the topic but if that is done first then they can look at other deductions.
Good topic. Thanks @bee.
Familiarize yourself with these line items and if you qualify you will adjust your gross income dollar for dollar.
I started a small business this year and notice a credit for my health insurance premiums (line 29), for my hsa contribution (line 25), for the deductible part of self-employment tax (line 27), and IRA deduction (line 32). All dollar for dollar reduction of my taxable income. I couldn't agree more with tb's point on the value of a tax credit.