If you want to save on taxes when going through major life events, then here are 11 tips to assist you. Take a look at these 11 Ways To Save On Taxes Using TurboTax.
1. Before finalizing on divorce, you should copy all the business tax returns in partnership with your spouse then sign in order for the IRS to issue you with copies of business tax returns of your spouse.
2. Paying child support comes with implications. Alimony is taxable to the recipient and deductible to the payer while child support isn’t deductible. For alimony to be deductible, payment must be made under a written agreement and its validity ceases upon the ex’s death.
3. You should keep track of the number of days and nights your child spends at yours’ and your ex-spouse’s house. This is to provide the court and IRS with documentation on household head filling status and dependency exemptions using TurboTax.
4. Move income to lower tax bracket of your child through paying reasonable child wages.
5. Take advantage of health insurance by deducting premiums you pay for your whole family.
6. If you use part of your house to discharge office duties, then you should deduct a rent, utilities and others.
7. Explore widely on reading materials, subscriptions, conferences and workshops which relates to your work.
Home Ownership and Investing.
8. Plan to own your home through saving. This will save you mortgage interest and property tax.
9. Points paid through your home loan should be deductible in that year. Points paid which is used to refinance a home loan should be written off in that period of the loan.
10. Make early contribution to your IRA online using Free TurboTax which is first so that your money may have time to grow until the deadline of April 15 the following year.
11. Avoid bad debts. You may be able to deduct personal bad debts as capital loss up to $3000 in tax return.
When filling taxes, TurboTax calculator will ask you about your life events, hence you should capitalize on it for bigger tax refunds.