1. Ensure that all of your paperwork and receipts are organized. Many make the common mistake of choosing the easier option of selecting the standard deduction. In many cases, this is an acceptable option, however hundreds who take it lose hundreds and sometimes even thousands over what they could have received had they organized throughout the year. For example, if you have a small business, save all of your receipts for the purchase of office items and itemize the deductions. Keep in mind that some expenses are not deductible, such as payday loans.
2. If you have a small business, you can deduct your utilities if the business is run out of your home. To do so, you must measure your total office space. Make sure you include any part of the home that is used for your business. Divide the square footage you measure by the total square footage of your home. The total is the percentage you can deduct from your monthly utility bills.
3. Pay what you owe on time. In the event that you don’t have the money on the due date, but funds will be available soon after that time, it is a good idea to seek an online payday loan. Payday loans in one day can be a great option, especially if funds will be available to pay back the loan quickly. You avoid penalties incurred by the IRS and will avoid penalties on the loan when you pay it off quickly.
4. Contribute to a retirement fund such as an IRA. This can help lower your taxes, and contributions are tax-free.
5. When in doubt, seek the help of a professional. Many file on their own because they don’t want to pay for the service. They often miss many deductions available, losing more on their refund than the services a professional can offer would have cost.