While, I generally don't get all excited about doing my taxes, this year because of potential inflation and the fact that Congress made some changes, in order to help bring the country out of a recession - we've got some NEW deductions and credits when filing this year.
Here are some tips to help when filing our return this year from www.chicagohealers.com. practitioner Julie Murphy Casserly, Owner of JMC Wealth Management.
1. Roth Conversions - One of this year's changes says that you can do a Roth conversion this year regardless of your income.
- Roth conversions could rise to 39.6 percent, up from 35 percent (depending on the tax bracket you fall into)
- It may sound appealing to spread the tax liability due over 2010 and 2011 but, bottom line, if you do a Roth conversion, pay all taxes in 2010 to save money.
2. Itemize - More than likely, your taxes will be less if you take itemized tax deductions instead of the standard deduction, especially with some of the new changes going into effect this year such as,
- Expanded tax credits for home purchases and education
- Tax credit for making your home more energy efficient
3. Pay Yourself First- Many people use a tax return as a forced savings, but it's always better to pay yourself first with each paycheck. If you're getting a tax refund, get your exemptions changed at work to increase your monthly cash flow into your checking account. Why let the government make interest on your money?
Julie notes that if you have questions, or are confused by some of these items, it's important to sit down with a tax professional now, or at least once every few years, to review your life changes and goals.
For more great information check out http://www.chicagohealers.com/
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