Plan now for your 2013 income tax filing

Income tax filing occurs January thru April 15 every year. Income tax
PLANNING must happen all year. There are simple things that can be done
to make April 15 less stressful.
Every year, millions of workers have far more withheld from their pay
than what is required. This becomes an interest free loan these workers
are giving to the government every year! We see many workers who max out
their credit cards, sometimes at 19%-25% interest rates. These taxpayers
then get large tax refunds, pay down these credit cards and start all
over again. This cycle can be broken by adjusting tax withholding
allowances to more accurately reflect the tax liability due.
Keep receipts of deductions that you might be able to claim on your tax
return. Every one donates to some charitable organization. We encourage
keeping a record of these donations. The days of not being asked provide
supporting documentation are long gone! The IRS expects you to have
receipts and records documenting your donation. Keep copies of checks
written and receipts for donated goods in a safe location.
The medical deduction has changed for 2013. A taxpayer must now have out
of pocket medical expenses that exceed 10% of their Adjusted Gross
Income before dollar one might be deducted. However, this includes after
tax insurance premium payments, long-term care insurance, dental
insurance, prescription medicine insurance as well as all after tax out
of pocket payments made for deductibles and co-payments. Also, don’t
forget to keep a mileage log for all those trips to the doctor. This
mileage might also be deductible.
These are just a few of the many areas where the average taxpayer might
be able to improve their personal cash flow as well as save tax dollars.
For more great ideas, read more at www.premierebusinessservices.com.