Common Tax Planning Mistakes
One key thing people need to remember when it comes time for tax planning in Utah is this: if you take the time to thoroughly go through your taxes and make the effort to do them right, then you can get hundreds, or even thousands of dollars, in your bank account. Everyone loves a little extra cash; why wouldn't you make the effort to get it? I know you only like to think about tax planning in Utah when it is tax season, but if you wait for that short amount of time you tend to take shortcuts and rush through them. This can result in you not getting the amount of money you deserve.
A common thing most people forget about is deductions they can take out. Some of those deductions are charitable deductions, job hunting expenses, education expenses and home mortgage expenses. With charitable deductions in your tax planning, many people don't see that there are many factors that you are allowed to "take deductions for cash and non-cash charitable donations such as used clothing or furniture. To take this deduction, you must maintain as a record a written communication from the qualified organization including the date and amount of the contribution. For non-cash contributions of $250 or more, you'll need a written acknowledgement of the contribution from the organization, with a description and a good faith estimate of the value of the goods and services," dailyworth.com reads. With job hunting expenses for your tax planning in Utah, you should know that that includes everything from mileage you travel to the amount spent on business cards, and from posting jobs on websites to how much it cost to get into job fairs you attended. For education expenses, dailyworth.com says "the tuition and fees deduction allows you to deduct up to $4,000 from your income for qualifying tuition expenses paid for you, your spouse or your dependents." Also, home mortgage expenses are almost always deductible, but these are commonly deducted wrong.
These are mistakes that happen all the time when it comes to tax planning, even in Utah. If you take the time to plan your taxes our early and make the effort to do them right, then in the end you will be rewarded. There is also no shame in getting help with your tax planning from a professional, they're here to help you get the money you deserve.
A common thing most people forget about is deductions they can take out. Some of those deductions are charitable deductions, job hunting expenses, education expenses and home mortgage expenses. With charitable deductions in your tax planning, many people don't see that there are many factors that you are allowed to "take deductions for cash and non-cash charitable donations such as used clothing or furniture. To take this deduction, you must maintain as a record a written communication from the qualified organization including the date and amount of the contribution. For non-cash contributions of $250 or more, you'll need a written acknowledgement of the contribution from the organization, with a description and a good faith estimate of the value of the goods and services," dailyworth.com reads. With job hunting expenses for your tax planning in Utah, you should know that that includes everything from mileage you travel to the amount spent on business cards, and from posting jobs on websites to how much it cost to get into job fairs you attended. For education expenses, dailyworth.com says "the tuition and fees deduction allows you to deduct up to $4,000 from your income for qualifying tuition expenses paid for you, your spouse or your dependents." Also, home mortgage expenses are almost always deductible, but these are commonly deducted wrong.
These are mistakes that happen all the time when it comes to tax planning, even in Utah. If you take the time to plan your taxes our early and make the effort to do them right, then in the end you will be rewarded. There is also no shame in getting help with your tax planning from a professional, they're here to help you get the money you deserve.
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