The end of summer is quickly approaching, and for most people, that means the end of their summer vacation. For some, it also means a beginning to a lot of other things too- like getting ready for tax season! But if you’re looking to get the most out of this coming tax season, then it’s time to start planning.
Looking forward is one of the best things you can do when it comes to tax planning. What is your projected spending for the year? What kinds of things qualify for tax credits and deductions?
You may obtain a good notion of what you’re qualified for by looking ahead and then arranging your expenses accordingly. It makes more sense to be prepared rather than scrambling for last-minute tax breaks.
Itemizing tax deductions can help many people lower their taxable income. When you have a number of tax deductions that qualify as itemized deductions and add up to more than the standard deduction available to all taxpayers, itemization makes sense. Charitable contributions, mortgage interest, property taxes, and a share of medical expenses over a certain income level are all acceptable tax deductions.
Don’t Forget The Kids!
All is not lost if you sent your children to summer camp or even sports camp so that you could work. Camps are costly, but you may claim the Child and Dependent Care Credit, which is worth up to $1,050 for one child and up to $2,100 for two or more children under the age of 13, with no age restriction if they are disabled.
The Child and Dependent Care Credit amount rose for the tax year 2021 only, and is now worth up to $4,000 for one child and $8,000 for two or more children under 13, with no age limit if they are disabled.
When it comes to taxes, having all of your records in one location might help you avoid missing out on any tax deductions or credits. Even if you haven’t kept good records in the past, you can save time around tax time by doing so now.
You should also keep track of any tax deductions and credits you claim during tax season.
A Summer Of Tax Relief
No taxpayer in their right mind wants to be hit with that tax bill, especially if it tends to be a struggle to pay off. The tax credit will not be enough to satisfy any tax debts individuals and families may have with the IRS.
But there is a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
How Simple Is Qualifying?
Considering that the Fresh Start Program is a federal program, you would think meeting the qualifications may be very difficult, but really, it’s a lot simpler and quicker than you think. Take the following steps in order to find out if you are eligible in as little as 3 minutes.
- Fill out some basic information about yourself and your back taxes here.
- Have a representative reach out to you to discuss your eligibility.
- Go through the enrollment process and finally reduce or eliminate your tax liabilities.