Thursday, March 04, 2010

How to Tackle Your Tax Bill

I was recently quoted in a personal finance article in The Faster Times on how to “tackle your tax bill.” It explains every step you need to take to get your return filed, with strategic tax advice. You can check out an excerpt from their post below:

" 'Tis the season for all things taxes. You suspect you might have to pony up to Uncle Sam. Sorry about that. But the good news is: you still might be able to lessen the blow.

Be strategic

In light of the struggling economy, some families are choosing to live in multi-generational households. If you are supporting one of the ever emerging multi-generational households, you may be eligible to claim tax exemptions for the additional household members.

Exemptions reduce your taxable income, explains Roni Deutch, author of The Tax Lady’s guide To Beating the IRS.

Run the numbers

As part of last year’s stimulus package, many American’s received extra money in their paychecks. But approximately 15 million taxpayers will have to repay $250-$400 of the tax credit they received. To avoid getting a nasty surprise when you file, use the IRS Schedule M to determine whether or not you may have to repay Uncle Sam.

“Although this credit is meant for good, it may cause some harm to unsuspecting taxpayers because the credit was applied automatically to all tax withholdings whether the taxpayer qualified for it or not,” says Deutch. After you determine whether you have to pay this credit back for tax year 2009, you should get a head start and check your current withholdings because this credit extends to tax year 2010, she adds."

Read the full article at The Faster Times…

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