Filing your taxes involves totaling your tax deductions to lower your taxable income. There are some great ways to maximize your tax deductions so that you can get more money back or have less to pay on your tax return.
There are certain tricks that you can use to trim your taxes down. In this economy, it is even more important to make sure your tax preparations offer you the best opportunities to save money.
The first trick to use to maximize your tax deductions is to pay another month of your mortgage payment before the year is up. This will add interest to the total amount you can deduct from your taxes. If you have any expensive medical bills, try to pay those before the end of the year. If your medical bills consist of more than 7.5% of your adjusted gross income, they can become a major deduction on your tax form.
Another way you can maximize your tax deductions is to pay property taxes before they are due. This amount will be deducted from your taxable income. Use your retirement plan account to accelerate your deductions, and if you are self-employed, you can wait to send invoices for work you have completed in 2010 until the first day in 2011. You will not have to pay taxes on this income until you have received it, so this is a great way to maximize your tax deductions.