Income tax questions answered

Income tax questions

We are approaching the end of the year and now is the time to position ourselves to save money on taxes for next year. Below is a list of things, which we can do to make sure that our tax burden is lower. Jesus said render unto Caesar that which is Caesar’s and we render unto the government that which belongs to the government but we do not want to render or pay more taxes than we should.

Number 1.  Should you adjust your tax withholding?

Do a quick check on your taxes for 09 just see if you’re going to owe any taxes or to determine if you have a large amount coming back. If either of these is the case he did make an adjustment. The trick is to have the amount of taxes withheld equal the amount of taxes owed during the year and with some practice you can get close.

Number 2. Should I contribute more to retirement savings?

The nice thing about this is that you have until April 15 to make IRA contributions to the previous tax year. If possible increase your current contribution to your company’s 401(k) plan. This is a great way to plan for your future and you save money on your income taxes.

Number 3. What about unemployment benefits?

You are only exempt up to the first $2400 this year and you need to check your statements and make sure that taxes have been withheld from the unemployment checks or you’re going to be making a payment to the IRS in April.

Number 4. Do students need to file an income tax return?

Only if you have had a job during the past year and your income exceeded certain limits. You may however qualify for the earned income credit, which could give you extra money for school.

Number 5. Can I receive a tax refund for this last year if I still owe taxes for prior years?

The answer is no, any refund you might have coming for this year’s taxes would be applied against the amount you owe to Uncle Sam.

Number 6. Should you seek professional help in doing your taxes?

Absolutely. If you are in business with all kinds of expenditures and deductions along with depreciation for equipment, you’ll need to consult either a tax accountant or a tax attorney.

If your tax return is going to be much simpler go to a tax service or online. I do my taxes with the tax companies online.

Jimmy says, our tax code is so complicated that there is absolutely no way any one person can understand it. Even Congressmen Charlie Rangel who wrote the current tax code had to admit that he doesn’t understand it.

Whoa Jimmy?

If you know anyone who needs financial increase, or start more money, or wants to save money send them a link to this website. www.increasenow.com

Guest articles on how to earn money or save money are welcome.

Income tax questions are too numerous to deal with in this article so if you have any tips on saving money on income taxes please share with our readers in the comments.