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???