02.14.2012 / Tips to Save on Taxes.
It is that time of year again- tax season. If you have not already filed your tax return, consider these tips to help make tax time a little easier.
Tip 1: Make a contribution your IRA. You have until April 15, 2011 to make your 2011 contribution. Then, once you’ve had your 2009 contribution, consider making a contribution for 2011 as early as you can. Your money will have more time to benefit from potential long-term compounding. And, if you do get a tax refund, consider using this money to make a contribution to an existing IRA or fund a new one. It’s never too late to start.
Tip 2: Double-check your withholding. You know that you’re going to have to pay the IRS, but why overpay them. So, make sure you’re not having too much (or too little) taken out of each paycheck. While the adjustment may have a minimal impact on your 2011 taxes, you’ll find that you’re already ready for 2012.
Tip 3: Did you buy a new home in 2011? It’s important that you learn about all the deductions you may qualify for as a homeowner, including mortgage interest, state and local property taxes, and loan origination fees (or points). For more information, visit irs.gov.
Tip 4: Did you welcome a new baby in 2011? Along with the pleasure of welcoming this new bundle of joy into your family you also get the opportunity to claim your newborn as a dependent, reducing your taxable income. Also, as a parent, you may also qualify for the child tax credit, the earned income credit and a child care credit. Finally, don’t forget to apply for a Social Security card for your baby.
Tip 5: Did you changing jobs or relocate in 2011? If so, you may be able to deduct your moving expenses. If you job change leads to self-employment, you may need to make quarterly tax payments, and you’ll be subject to self-employment tax as well as income tax. Also, unemployment wages are considered taxable income.
For more tax saving strategies*, tools and resources, visit First National Bank’s online Tax Center at www.firstnational.com and click on Tax Center. You can also visit www.irs.gov, and click on individuals.
Do you have any tips that you can share with our readers? Please share them at www.facebook.com/fnbomaha.
*This article does not constitute legal, tax, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material.
