Resource published Mon, Jun 19, 2017 at 02:19AM UTC edited Mon, Jun 19, 2017 at 02:19AM UTC
Southbourne Tax Group Review - How to Prevent Mistakes on Your Taxes as a Fresh College Graduate Edit Title
“Yes! I made it” is probably the first thing that comes to your mind when you graduated college. But with that achievement also means bigger responsibilities that can affect tax time. Southbourne Tax Group only wants a few minutes of your time to read this post for they aim to help you avoid doing mistakes on your taxes with the following guidance.
If you’re a single filer and you have an adjusted gross income below $80,000, don’t forget that $2,500 of the interest portion of the student loan payments can be tax deductible. And if you’re a married person filing jointly, on the other hand, you need to have an adjusted gross income below $160,000.
Searching for a job and its expenses can be tax deductible but on certain conditions. If you are planning to search for a job in a new career field or work as a full-time for the first time, then you can’t deduct the expenses involved. But put in mind the major tax breaks included in moving to a new city for that first job.
Never ignore your company’s 401(k) but instead contribute on such to have a good start on retirement savings and to shelter up to $18,000 from your income taxes each year. With a family coverage, you can secure $6,750 each year if you contribute to a health savings account and are enrolled in a high-deductible health plan. Conversely, single filers can secure $3,400. In order to keep another $2,600 out of your taxable income, you should put your hard-earned money on a flexible spending account.
Southbourne Group also advises saving at least 25% of what you are earning for the IRS. And if it is already included in your plan to be a freelancer or to be your own boss, then expect huge deductions for business expenses.
Be familiar with lifetime learning credit, Southbourne Group advises. Up to $2,000 of the tax credit could be claimed for post-secondary work at eligible educational institutions every year. That is when you’re a single filer with below $65,000 adjusted gross income, or a married person filing jointly with below $131,000 adjusted gross income.
Cutting your tax bill is also likely by saving money. You might qualify for the saver’s credit if you’re a single filer with below $31,000 adjusted gross income, while a married person filing jointly should have below $62,000 adjusted gross income. Such can reduce your tax bill by up to 50% of the first $2,000 as a single filer, and the first $4,000 as a married person filing jointly by contributing to an eligible retirement plan.
As their last reminder, Southbourne Tax Group wants you to not overspend on tax software and getting professional human help. Got a simple tax situation? Then simply use the free packages offered by many tax software companies. Meeting a pro with little or no cost at all is possible with Volunteer Income Tax Assistance program or other related programs.
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