Five Simple Ways To Earn And Save Money

Save Money In 2015 photo
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The year 2015 is finally here and my family has created some big savings goals. We plan to increase our income while cutting back on frivolous expenses. If you would like to save money this year than you may be interested in our money saving tips.

TurboTax

1) Carefully review your health insurance, tax information and retirement benefits. This year make sure that you have the best health plan possible and are taking advantage of any tax breaks available. You can use TurboTax 2013 to help you with your taxes. Using Turbo Tax 2013 is a better option than paying a hefty fee for professional services. By increasing your retirement contributions now, you can enjoy a worry free retirement down the road.

2) You can earn extra money doing the thing you love the most by starting up a small part-time business. If you enjoy woodworking, making crafts or organizing cluttered rooms you can sell your goods or services. This is a terrific way to earn a few extra dollars in your spare time.

3) Sell the things you no longer use. You can clean out your basement or garage and make some money in the process. You can sell gently used items online at Craigslist or through a local buy and sell group.

4) Weatherproof your home. Weather you are a homeowner or a renter who pays for utilities you can save a bundle this year by weatherproofing your house. You can save on both heating and air conditioning costs by sealing up any drafty windows in the home.

5) Get a cheaper cell phone and monthly plan. Far too many people pay too much for their cell phone. Rather than buying an expensive cell phone that comes with a pricey payment plan and long contract you can purchase an older model and sign up for low monthly services that can be cancelled at any time. You can even purchase a gently used cell phone for a bargain price.

TurboTax Survey Reveals That Most Americans Are Unaware Of The Tax Implications Of Obamacare

TurboTax: US Residents Aware Of The Tax Impact Of Obamacare

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According to a recent survey, 48% of Americans are oblivious of the requirements for reporting their health insurance condition on tax returns they file for 2014.

Given that the 2014 tax-filing season is just weeks off, An Intuit Turbo-tax Health Survey that has been performed via the web on 2,000 adults by Harris Poll suggests that Americans remain incognizant of the relation between taxes and health care.

Under Obamacare or the Affordable Care Act, Americans must show that they are in possession of good insurance,according to the law, when filing their 2014 taxes or they will be penalized.

Although the majority of Americans without health insurance, 62 percent, understand that people without health coverage will have to pay a punishment, many are not aware of the reality that the deadline for avoiding this penalty has already passed. Any health coverage secured during the current enrollment period which runs through Feb. 15, will only be applicable for returns that are completed in 2016.

According to the TurboTax Affordable Care Act product leader, Sacha Adam, these numbers show that most US residents do not recognize the connection between taxes and health care even with open enrollment.

Other information that the survey has revealed:

9 in 10 Americans currently have insurance, but people who reside in Southern US states are far less likely to have this coverage than people in any other region.

Almost half of all US residents do not know that there are deductions known as premium taxation credits that are in place to make health ins coverage less costly for families with low to medium income.

Almost 3-quarters of all US residents who bought health coverage from the ‘Health Insurance Marketplace’ intend to renew this same coverage in the year to come.

With extensive dealings in the San Diego area, TurboTax by Intuit Inc, has provided a free, web-based asset at TurboTaxHealth.com.

Little Deductions You May Miss

You need to know what deductions may be possible even when you hire someone else to do your taxes. A quick look over the tax codes on the IRS.gov website will help you determine all of the deductions you need to be considering.

Top Deductions that are Missed

1.     Expenses that are NOT reimbursable by the company. Any expenses that are incurred during the tax year and that are considered ordinary and necessary for your industry can be used as a deduction on your taxes (at least a portion).

a.     Depreciation on work computers

b.     Dues paid to professional societies

c.     Chamber of commerce membership

d.     License fees for your business or occupation

e.     Tools and supplies used in work

f.      Work related education

g.     Union dues or other related expenses

2.     Most people overlook the potential of the deducting expenses associated with working at home. The Business Use of Home deduction can be applicable when your home is your principle place of business or when the space is used EXCLUSIVELY for business purposes. A portion of home expenses can be deducted when these criteria are met. The amount deductible will be determined by the percentage of home space used for business purposes.

a.     Real estate taxes

b.     Deductible mortgage interest

c.     Utilities

d.     Insurance

e.     Repairs

3.     Mileage on a vehicle can be deducted for a number of different reasons. The amount that is allowed will be determined by the activities, but the numbers can add up to substantial savings. Be sure to keep a written record of all mileage you intend to claim on your taxes.

a.      Business mileage – keep up with the trips you take for meetings, events or supply runs. Any time that you use your vehicle for business related purposes you can add that mileage to your totals. The business mileage has the highest allotment by the IRS.

b.      Charitable mileage would be those miles you put on your vehicle when driving in the service of a charitable organization.

c.      Medical mileage would be those miles put on the vehicle when visiting the doctor, dentist or other medical specialist.

4.     Casualty, disaster and theft losses may be overlooked by many people when it comes to taxes. The amounts you can claim on your taxes are only those above any payments made by insurance companies. You will along be able to claim a portion of those totals. These loses are generally deductible for the year they occurred. Property located in a federally declared disaster area may meet different guidelines.

Knowing all that you can about the tax code will help you find even little deductions that you might be missing. A tax professional can make it easier to weed through all of the tax code. Some of the deductions seem little until you begin to add them all up. Counting a penny here and a penny there will help you save big money in the long run.

The key to making the most of your tax deductions is documentation. Keep well organized records of your actions and activities (for your business as well as your personal activities). It will be easier for you to sort through the records when they are in order. Good documentation will help you discover any of those little deductions you may have otherwise missed. The more deductions you uncover the lower you will be able to push your tax bill.

 

Nick Maddux has been in the finance industry for 3 years; he contributes to blogs that deal with insurance deductions and where to get a free credit score report.