Financial Planning, Income Taxes

Score A Big Refund – How I Shaved $41,000 Off My Taxable Income

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Score A Big Refund – How I Shaved $41,000 Off My Taxable Income

 

reduce AGI, income tax, stack of cash, cash, sophisticated spender, tax tips

Hello Sophisticated Spenders!

This post was originally written in January of 2012 but the ideas still apply!

Today I would like to share with you a few of the ways that I reduced my Adjusted Gross Income (AGI).

I shaved $41,000 off my taxed income!

First I reduced my gross income by:

1. Contributing to my retirement account.

2. Making Charatable Contributions thru CFC (my employer).

3. Taking advantage of my company’s medical saving account.

In 2010, I grossed approx $79,000.  I reduced my Adjusted Gross Income to $68,000.

I reduced my Adjusted Gross Income by the first $10,000 by:

1. Having Rental Real Estate

2. Student Loan Interest

3. Taking a dance class at the local community college

Next, I reduced my Taxable Income to $38,000 because I itemize.  Here are my items:

1: State and Local Income Taxes

2: Paying Real Estate Taxes

3: Personal Property Tax (Virginia Drivers have to pay this)

4: Home Mortgage Interest and Points

5: Mortgage Insurance Premiums

6: Gifts to Charity (Donations)

7: Tax prep fees (includes books and software)

[tweetthis]Tax advantages of home ownership, college, saving for retirement, owning rental real estate & donating to charity. [/tweetthis]

[tweetthis]Spending all of your money on McDonald’s, Starbucks and other “stuff” does not pay off. [/tweetthis]

[tweetthis]Try to spend a decent amount of your money on things that can pay you back![/tweetthis]

TurboTax has an app called Tax Caster.  It will give you an expected refund amount.  I entered last year’s tax info and it was pretty accurate!

Good luck and I wish you a big refund!

Any other items that are missing from the list???

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