Don't let tax season intimidate you. Equip yourself with the proper knowledge and resources, and you may find yourself with additional savings at the end of April. Here are just a few 2008 tax savings tips to help give you an edge in today's tough economy:
If you changed jobs during the year, look to see if you had more than the required FICA tax withheld on your combined W-2s. If you did, any excess could reduce your tax obligation or increase your refund.
New baby in the family? On a typical return, a dependent child will reduce the family's taxable income by $3,500 for 2008. This amount is reduced after adjusted gross income reaches $239,950 when filing jointly.
Families may be eligible for the additional child tax credit if their earned income is above $8,500, and they owe less in tax than the credit amount.
If you are paying alimony, remember it is deductible for the person paying it but taxable for the one receiving it.
Be smart this tax season and research deductions that apply to your specific situation. Doing so may increase the size of your refund check and allow you to contribute a healthy amount to your savings. Read more on tax planning.
Check out the new Feed the Pig Podcast #24 - Investing 101.
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