David Bakke is a writer for Money Crashers Personal Finance, where he shares tips for smart shopping, saving money, and building a long-term nest egg.
The federal government recently allowed the payroll tax holiday to expire, which resulted in a reduction in take-home pay for many Americans. With the current national debt close to $17 trillion, more changes might not be out of the question in the future. You can’t control tax policy, but you can control your own personal economy. There are several measures you can take to reduce your overall tax bill simply by educating yourself and doing a little work. If you’re serious about saving money on taxes, check out the following helpful tips.
1. Prepare Your Return on Your Own Check out the IRS website for free file fillable forms along with a list of organizations that can help you prepare your tax return for free – as long as your adjusted gross income is $57,000 or less. Alternatively, explore the many options for tax preparation software from your local retailer. Most are very user-friendly and are designed to maximize your return and minimize your bill. Plus, the cost of that software is tax-deductible. Preparing your own return also has the benefit of giving you an education on your own finances and how they interact with taxes, which can lead to even more ways to save.