Taxes are something which every citizen must file. The tax value is flexible and it depends on a number of reasons. There are a number of life events that directly affect one’s tax amount. Some legislation changes can also change your taxes. Here we talk about a few such factors.
One of the ways to reduce taxes for a married couple is to file it jointly. It provides higher deductions with lower tax rates. Of course very few would get into nuptial bonds to get a tax relief. But there are a lot of married couples who aren’t aware of this facility and end up filing separately. If you are one of those then we recommend filing it jointly with your partner from the next time. You can further check in an EIC calculator how much relief you will get for this marriage clause.
Having dependents also allows you to avail tax benefits. These dependents can either be your own children or anyone else from your family. So, if you have one then it is time you start mentioning their name in your return. There are a few benefits related to education as well. So if your dependents are studying then you must check those as well.
If you have a student loan on your account then you can avail up to $2500 of your interest on taxes. There are certain professional certifications and designations that are also enlisted for tax benefits. One must check that list as well.
There are benefits related to property as well. If you are thinking of buying or selling a home then you can check a list of benefits that you can avail. There are plenty of benefits such as paid points. If you are a seller, then you can avoid taxes on up to $500,000 of profits. This can be done by filing jointly.
There are several other methods such as retirement contributions, a salary raise and inherited wealth. So, before you go for your next filing make sure you are not losing on any benefit that you are eligible for.