Now that we at the beginning of a new tax season let’s talk about one question that many taxpayers want an answer to, “are there any new changes that can help me this year?”  The answer is YES (although that is not the real question).  Some of the changes include increased standard deductions and personal exemption amounts; increased earned income credit limits; and a reduction in payroll taxes.  These changes will touch the vast majority of taxpayers in a positive way.  

Some good things also went away, however, the $400 making work pay credit for example.  The fact is there are some law changes that help and others that hurt.  This brings us to the real question in taxes which is, “how can I pay less taxes and get back more money?”  Well, on your tax return there are three broad categories -Income Adjustments; Deductions; and Credits.  Within each there are several potential tax saving write-offs.

You see, adjustments and deductions help to lower your table income, resulting in a lower income tax.  Credits reduce your income tax on a dollar for dollar basis.  In addition, if you qualify for one of the refundable credits, you could get a refund even if you owe no taxes.

As you look to reduce your taxable income or increase your refund, how many adjustments; deductions; and credits can you take advantage of this year?  What can you do today to help improve your tax and income situations in the future? 

By taking advantage of the educations credits you could get tax write-off currently while at the same time be positioning yourself for better employment opportunities, for example.  The same with buying a home and being able to itemize your deductions, or contributing to an IRA or your 401(k) plan at work. 

Above were just a few examples of how adjustments, deductions and credits can help you now and in the future.  Remember; always stay on the right paths.    

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