Tax Tips from Tex
Here are four quick tips to keep in mind as you’re working away on taxes:
- Most people get audited because their deductions exceed the average of those in the same income and zip code bracket. So, if you’re making like $40,000 a year and give $8,000 in charitable giving, you definitely want to attach that substantiation.
- First-time home-buyers are entitled to a tax credit of 10% up to $8,000 on the cost of a new house. And guess what…? You can still claim this credit if you’ve owned a house for investment purposes or vacation ecstasies.
- As long as you’re earning money, YOU can claim the working-pay credit that comes to $400 ($800 on a joint return). Simply file schedule M to do so. Congress ordered the IRS to reduce the withholding tables in the expectation that many people will be claiming this credit. So claim it!
- You are able to add the standard deduction of sales tax on purchasing a new car to that of any real estate tax you paid as well – up to $500 ($1000 on a joint return).
Good luck y’all! Remember, the taxman never stops!