Tax Refunds & Advice

Are you making upgrades to your home? If so, you might as well look into those that can reduce your taxes as well. The IRS website states:

“Individuals can make energy-conscious purchases that will provide tax benefits when filling out their tax returns next year. The new law provides tax credits for making your principal residence, which must be in the United States, more energy efficient and for buying certain energy efficient items.”

By installing energy-efficient upgrades to your home before the end of 2009 you will be able to take advantage of tax credits. Also, keep in mind that the upgrades you make should be expected to stay in your home for at least five years.

What types of home improvements and upgrades qualify for energy-efficient tax credits? Here is a short list:

1. Insulation
2. Exterior windows and doors
3. Central heating and/or air conditioning
4. Geothermal heat system
5. Storm windows

Upgrading your home is a great idea. This can help to keep your property looking good, while also ensuring that it stays in great condition as the years go by. If you are thinking about making upgrades before the end of 2009 consider those that qualify as energy-efficient tax credits. This will go a long way in reducing your tax liability, and making you a happy person when it comes time to file your final return.

Do you own a small business? No matter the industry you need to pay taxes. This may be scary, and if you do not know what you are doing there is no denying that you could make a mistake. But even with that in mind, you should not let your dream of owning a small business die because you are afraid of the tax implications.

Although it will take some time to learn the ins and outs of taxes and how they affect your small business, the following pointers should open your eyes and get you on track:

1. Stay organized. It is important for you to remember that your small business and your personal tax situation should be kept separate. If you intermingle the two and become disorganized you will be in for a huge surprise come tax time.

2. You don’t have to know everything. It is important for small business owners to hire professional help when need be. If you don’t know exactly what you are doing you should hire a CPA who does.

3. Learn as much as you can before you go into business. There is a lot that you need to know before opening a small business, no matter the industry. Learn as much as you can about the business, including its structure (LLC, Inc., etc.), and how it will affect you from a tax point of view.

These three pointers are not meant to teach you everything about taxes and your small business. But at the very least they should show you there is a lot to learn, and that professional help can go a long way in bettering your business and improving your chance of future success. 

Soon enough it will be time for you to file your final tax return for 2008. Are you ready to take advantage of as many tax breaks as possible? If not, you are making a huge mistake. Passing by even one tax break could cost you money. Why do you want to pay the IRS more than you have to? There are many common tax breaks waiting to be taken advantage of. Do you know what they are?

1. Mortgage interest. Interest paid on a home loan is usually tax deductible. In fact, this usually includes interest on your primary home, as well as a vacation property if you have one. In some cases you may also be able to deduct the interest on a second mortgage, also known as a home equity loan.

2. Student loan interest. Tens of millions of Americans are buried in student loan debt. While it can be a pain to deal with, you can take advantage at tax time. If you are liable for your student loan be sure to look into how much of a deduction you can take.

3. Retirement accounts. Not only are retirement accounts good for your future, but this can also help you right now from a tax point of view. You may qualify to take a deduction for contributions that you make to certain retirement accounts, such as a traditional IRA.

Do any of the above tax breaks favor you? Chances are that you can take advantage of at least one of them. Millions of Americans own a home, have student loans, and are funding a retirement account. No matter what, you should always be looking for tax breaks that can help you when it comes time to file your return.