The Internal Revenue Service (IRS) has released the top five tax advice tips for 2012. These are tips that taxpayers should keep in mind during the coming year.
1. Be Careful With Refunds!
When taxpayers have too much money withheld from their paychecks, they will receive a refund at the end of the year. Some taxpayers will receive a large refund because they have not taken enough allowances on their W-4 form or have not filed it at all. This can be dangerous for taxpayers who plan to use this extra money to pay off debt, purchase items or make investments in risky ventures. The IRS cautions taxpayers that they should be saving this money instead of spending it on items they want now.
This is because once the refund is received, it cannot be retrieved if you need it back in the future.
2. Make Timely Donations To Charity
If you donate to charity, remember that you will get a credit on your taxes for doing so. You will need to save your dated receipts and make sure you attach them to your tax return when filing it in April. If you did not get an itemized deduction last year, don’t worry; if you make a donation by December 31 of this year, you can still deduct
Are you thinking about making any significant changes to your tax planning? The best time to do this is usually in October, but it is still early enough to take a look and make sure that you are still on track for the 2012 tax year.
According to a new research study, the average American household spends $2,200 each year on “romantic” items.
Romance can be expensive. In addition to gifts and dinners out, many people have expensive hobbies like skiing or golf that they use as a way to spend time with their significant other.
But there are tax advantages for spending money on your significant other. The IRS allows you to deduct “expenses incurred for the benefit of your spouse or your dependents” if you itemize deductions on your federal income tax return.
The most common deduction for dating is travel expenses incurred when seeing your significant other. If you drive from Virginia Beach to Washington D.C., for example, to see your girlfriend, you could deduct part of the gas you used along with tolls, car washes and oil changes of the trip.
The second most popular deduction is entertainment expenses. If you go out on a date with your sweetheart, you can deduct half of the cost of the dinner or show. More than one pair of lovebirds has been audited by the IRS over this one!
If you are married or in a long-term relationship, then anything that is related to that relationship is also tax deductible – including wedding gifts and engagement rings
1. Pay estimated taxes if you have high income.
2. Deductions can reduce your tax liability.
3. Make charitable donations if you are able to do so.
4. Keep records of your charitable contributions for tax purposes.
5. Consider starting a home-based business entity if you are self-employed.
Art is known for being a passion of the rich, who can afford to indulge in their creative urges. In fact, many famous artists have been poor throughout their lives. This is particularly true of those who practiced during the Romantic period in the late 18th century and through the 19th century.
In fact, many of these great artists never had a steady income from their work and most did not sell their work until after they had passed away. Many of them lived in poverty from youth to old age and had to take on other jobs to make ends meet.
If you are one of the millions of Americans who has an artistic talent, such as writing, singing or painting, you may be able to make money from your art or creativity in your spare time. You do not have to create art for a living; you can do it as a hobby. But because so many people are talented at art, you will need to carve out your own niche if you want to be successful with this business idea.