It is estimated that each year, American families are overpaying income taxes by around $400 because of missing the many tax saving tips for families. It is important to be aware of how the tax laws change to be certain that you are receiving all of the tax benefits that are allowed. Below are a few family tax benefits to take advantage of each year.
While it is tempting to treat a
tax refund as a windfall, it is actually more like an interest-free
loan to the government. The goal should be to break even rather than
receive a large refund each year. Check with a tax professional about
how to leverage this aspect in the best way.
2. Child Tax Credits
tax credits are available for up to $1,000 for each qualifying child
who is under 17 years of age. To qualify, the child needs to be claimed
as a dependent by the taxpayer. There is no limit on how many children
may be claimed, as long as they reach the criteria specified.
3. State and Local Tax Credits
who reside in states that do not have local income tax may deduct the
sales tax paid from federal tax returns. If state and local taxes are
paid, it is possible to deduct whichever amount is greater: either the
amount of tax paid or the amount of sales tax paid.
charitable donations for the value of items or cash paid to any 501C-3
non-profit organization or church. Save receipts for donations in excess
of $75 for services or goods and for over $250 when no goods are
5. Real Estate and Stock Losses
the benefits of home ownership is that the mortgage interest is
deductible. By refinancing, you can also be eligible for loan cost
deductions. Stock losses that exceed gains can also be used to offset
ordinary income and reduce the amount of taxe owed.
6. Retirement Fund Credits
tax-deductible contributions to Individual Retirement Accounts. Check
with the IRS for the maximum IRA contribution, which can change
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