Now that the tax season is over, do you need to pay taxes instead of getting a tax refund? Of course you are not alone and may be replayed next year. You can take some steps to increase your chances of getting a refund, and you don’t have to be a tax accountant to take advantage of these charitable tax deductions 2018. The key is to start planning now, not wait until the end of the year. Below you will find a list of the actions you need to perform.
Contribute 401K or IRA
Most people believe that the only reason for retirement funds is to ensure financial independence, because they grow older, but it can also bring short-term tax benefits. In most cases, the money you spend on your 401K and personal retirement accounts is tax-free and is not included in your taxable income.
Donate to charity
Donations or charitable expenses related to volunteering can be detailed at the time of tax return and deducted from your income. Remember to keep all the receipts and track the flight to represent the charity or organize your volunteer work all miles. By 2018, these miles will be deducted at a price of 14 cents per mile.
Purchase of primary residence
Having a home has an obvious tax advantage. The interest you pay for a mortgage can be completely tax-free. In the first few years, mortgage payments paid interest, which would greatly reduce the adjusted total income at the time of tax reporting. Remember to pay the mortgage for January 2019 in December to get the highest tax benefit in April.
Investment in solar energy
If you want to list a home improvement list, consider adding a solar panel to this list. Solar will receive a homeowner who is up to 30% of its installation cost through a tax credit. I will hurry because these credits will be reduced after 2019.
Apply for credits
Interest on student loans and/or tuition fees can be used as a charitable tax deductions 2018. Currently, students can also access US opportunity credits, which cover an area of $2,500 per year, and return credits for up to $2,000 per study in taxation.
Do business at home
Starting and maintaining business in your home will provide you with a new source of income, but primarily, you can deduct all income generated by the company. These specific charitable tax deductions 2018 can include business expenses, portions of mortgages, utilities, repairs, and even the initial cost of the business.
Medical or dental expenses
Many of your medical and dental expenses are tax-free, as well as transportation and parking.
Open a flexible spending plan
Many employers offer flexible spending plans that allow their employees to contribute to their annual medical expenses. These medical contributions are usually not included in the taxable income.
If you are looking for a new job next year, please remember that you can cancel some of the costs associated with finding a job. These cancellations include clothing, travel, food, etc. These expenses can be deducted even if the work is not included in the tax year.
As they say, the best defense is a good offense. If you are worried that your deduction in this year does not include you correctly, it will be beneficial to make quarterly payments to your accountant and tax will consider your income without paying the prepaid cover. Child tax credits are still included in the new tax reform bill. In fact, they have changed from $1,000 per child to $2,000.
Find all available tax credits
We have listed many tax credits in this article, but we can use more tax credits. Some of these include childcare costs and adoption for low-income families. Keep in mind that tax credits are more valuable than simple deductions because they can reduce your taxable dollar income.
The 2017 Labor and Clause Act, enacted in December, significantly revised the previous tax law. This law will affect your tax planning for 2018, so please call a professional who collects taxes. Regardless of what you think you know or how many times you search, professionals can determine the deductions and tax credits that are useful to you. Professionals will also help you stay organized and minimize your tax liability.
Remember to be a smart taxpayer and learn how to make money through tax returns.