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Filing your taxes always seems to be a touchy subject every year. It can be an easy process but can also prove to be a long drawn out process if you don’t do your research. The more you make, the more you may owe in the long run. Minimizing your tax early in the game can help save you a huge headache and could give you more in your bank account when this time of year rolls around.
One easy way to minimize your tax (if your job offers this) is to start putting towards your 401k. That not only helps lower your taxes, but helps you save for the future. It’s never too early to start putting money aside and thinking about retirement funds. I’m only 31 but i know that time could creep up on me faster than I may think.
If I could share one thing with you that I’ve learned, it would be to educated myself especially when it comes to blogging and taxes. There are a lot of deductions that I wasn’t aware I could claim and pretty sure there are plenty of others I overlooked. I will definitely be doing more research long before tax season comes to help save me a whole lot of time and money. Claiming as many deductions that are entitled to you can help lower the amount you may owe to the IRS at the end of the year.
It may be helpful to keep your receipts and any important documents in a safe place. That way you have everything you need and you won’t be scrambling to find anything like me. I have my own office now so I can organize everything a lot better so that it will be a much smoother process. Preparing and organizing yourself beforehand will not only save you time, but will have you owing less to Uncle Sam or maybe even getting a little something back.
How do you prepare for the tax season and what are some ways you minimize your tax?