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There are some free income tax preparation tips available online that many people do not know. Here are some pointers that can benefit you when you file your tax return.
The fee that you paid to have your taxes prepared last year is deductible on the current return. Make sure that you keep the receipt. If you have free income tax preparation or you did your taxes yourself, you miss out on this deduction.
You should maximize the amount that you contribute to your 401k. This will reduce your taxable income and save you money over time. If you have an Individual Retirement Account (IRA), contributing the maximum amount will have a similar affect on your taxable income.
If you like to give to charity, consider donating stock instead of cash. You can deduct the full value of the stock even if it goes up in value after you donated it.
There are several deductions for homeowners. If you sell your home, your profit is non-taxable as long as you lived in it for at least two of the last five years. The interest expense of a home construction loan is deductible for up to two years. Points and loan origination fees can be fully deducted from your retun if you bought your home in the same tax year.
The fee that you paid to have your taxes prepared last year is deductible on the current return. Make sure that you keep the receipt. If you have free income tax preparation or you did your taxes yourself, you miss out on this deduction.
You should maximize the amount that you contribute to your 401k. This will reduce your taxable income and save you money over time. If you have an Individual Retirement Account (IRA), contributing the maximum amount will have a similar affect on your taxable income.
If you like to give to charity, consider donating stock instead of cash. You can deduct the full value of the stock even if it goes up in value after you donated it.
There are several deductions for homeowners. If you sell your home, your profit is non-taxable as long as you lived in it for at least two of the last five years. The interest expense of a home construction loan is deductible for up to two years. Points and loan origination fees can be fully deducted from your retun if you bought your home in the same tax year.
