Unexpected Ways to Save on Taxes
The tax burden seems to be growing in every direction. If it doesn’t cost more in income tax then the local government gets you through the sales tax. It may not be possible to completely avoid all taxes but there are ways to save on the taxes that you do pay. Tips for Saving on Taxes
Shop online. Although some states are finding ways around it, most do not tax items purchased over the internet. Consider the idea that you spend $5000 in miscellaneous items (for gifts, clothes and even cleaning items) over the course of a year. Using the internet could potentially save you $400 each year. Using those companies that ship for free will save you even more in the end.
File online. There are a number of companies that allow you to file you taxes online through their services, like TurboTax.com and TaxCut.com (H&R Block’s online filing). It will cost less to purchase the online service than it would to sit down in the office and you often get some of the same support that you would in-house. You could also you the irs.gov website to do your filing and do it for free.
Buy a home. This will only work from Jan. 2009 to the first of Dec. 2009. The government is giving a tax credit to new home buyers (those that have not owned a home in the last three years) that could be worth up to $15,000 (10% of the value of the home).
Saving money on taxes does not have to be complicated or painful. It can involve just changing a few habits. Shopping online, buying online and even purchasing a new home are all just a few of the places that you can find to currently cut down on the amount of taxes that you have to pay.