Did you know that almost anything you purchase related to work or healthcare is tax deductible? If you did not already know this, listen up. Most of us who fall in a higher tax bracket do not look forward to the dreaded April fifteenth deadline when taxes are due. If you owe money at the end of the year, there are special breaks you can take in order to decrease the amount you owe and help pad your pockets for the upcoming tax year.
Do you run or operate your own business? If so, save your receipts; gas, tolls, and even your monthly automobile payments can be deducted as a business expense come tax time. While the savings seem minimal, they are indeed savings and rest assured that the amount you owe will be lower should you end up owing anything. Should you not end up owing taxes at the end of the year, you can add these deductions and get a bigger tax return. Who wouldn't want to have this nice bonus, something you can use to grow your business.
Do you donate to your local charities? Make notes of any donations you make through the year, as well as where you make those donations to. Do you donate clothes to Goodwill type stores? Make sure you get a receipt from them with an estimate of the amount of items you are donating. Come tax time you'll be happy you did.
Do you have medical expenses? The government wants to reimburse you for any health related things you have paid for out of pocket during the year. Save dental receipts, doctor receipts and hospital bills. Then when tax time rolls around, pull them out and start maximizing your deductions. The more prepared and organized you are throughout the year, the better chance you'll have with respect to saving money at the end.
Now that you are saving your receipts, where do you save them? A shoebox will do or any box or storage area where they are out of the way is fine. Keep in mind that you may not need to provide these receipts at the end of the year but it is vital to keep them close by should the IRS decide to audit you. Remember, you want to be truthful and keep good records of all of the deductions you claim should you need to prove it later.
