Of all the topics I could write about, tax would be my least favorite. You must understand, tax filing is the time of the year I would rather be swallowed up by the ground and be spewed out when it’s over and done. If it were not for my accountant then I would have been in jail for being so ignorant when in comes to tax filing!
However, overtime I have learned some few tricks that will surely benefit seniors like me when filing. My best advice is to keep a diary of your daily activities and expenses—not the one which you pour your heart and soul into but more of a list of your daily movements to remind you come filing day. Take note that it is not your expenses alone that can save you bucks on filing day, even your activities can do that.
·         Keep a diary. Like I mentioned earlier, this should be a list which you can share with your accountant so he or she will be able to tell you what can be included and not. As for me, I like keeping one online which is shared with my accountant. This way I won’t have to share it with their team everytime we need to file as they can access my online diary anytime and ask questions if they have one.
·         To itemize or not to itemize, that is the question. You might want to think it over if your itemized deductions are maximizing your savings. It is because there is a standard deduction given by IRS depending on your age and marital status. If you do itemized deductions, you will not be qualified for the standard assigned deduction so you might want to check what’s more beneficial to you between the two.
·         Count your losses. Contrary to living a happy life by counting your blessings, count your losses to save some more on your tax filing. Some of your losses are qualified for a deduction such as your stock losses. While it may not be enough to cover your losses, it is better than none at all.
·         Your donations count too. If you support a cause enough to give a percent of your money, whether it is a one-time affair or a regular stint, your accountant will tell you that it can be declared for deductions. Now you know why big companies are also heavy on charity work.
·         Don’t forget your effort in getting that cause to happen! Even your car mileage will count as a deduction so make sure you take note of it too.