Money Matters - Simplified

Hi-5 to Save Tax

themoneytimes.com provides 5 quick tax saving tips for those on the go.

1. If you work from home or contribute money to charity, you must itemize your tax return instead of taking the standard deduction.

2. Your child, studying in college, can help you save tax. All you have to do is open education savings account and claim for the education tax credit.

3. You can even use your marital status as advantage by filing your tax account jointly. You can get a standard deduction if one of you files the tax return with his or her status as head of the family.

4. Child care is also a smart way to save tax, all you have to do is get a flexible spending account, sponsored by your employer, on a pre-tax set-up. It will reduce your taxable income or you can simply claim your child care expenses at the end of the year.

5. Just like child care, health care can also save your money. You must keep a record of your health care including medicines and if you have selected a flexible spending account, consider these expenses and get them reimbursed.

Above all, never forget to review your overall tax condition; it will not only help you find the best way to curtail tax but to organize your financial documents as well.