File Tax Returns – Reducing Your Tax Bill
Give to charity
A decent portion of most taxpayer's dollars goes toward honorable social causes. But if there's one cause you're particularly passionate about, consider donating to support worthy organizations instead of giving everything to the government. However, make sure to double check that the charity you donate to is considered an IRS qualified organization before you submit your e-file tax return. Otherwise, the contribution won't be deductible.
Give a gift
You can't put down everyone on your holiday shopping list, but you can gift up to $14,000 to your children, grandchildren or other close loved one without having to file a gift-tax return. Married couples can gift up to $28,000 when filing a joint return.
Too many taxpayers forget to account for energy-efficient purchases when they file tax returns. Not all home improvements will qualify, but things like qualifying new windows, furnaces, and insulation are all examples of potentially eligible upgrades. The amount of the credit is either 10% of the cost or a specific amount, depending on the type of improvement. Keep in mind this credit has a lifetime limit of $500 and is set to expire at the end of 2013.
The IRS rewards productive spending of your finances, and these are just a few of the ways you can go about this process. For any questions on applying these savings to an e-file tax return, contact tax professionals at H&R Block to save money the smart way.