Many people are overpaying on their taxes without realizing it. Because of one or several factors, you can qualify for tax benefits and write-offs. Many of these factors depend upon your lifestyle, your job, your marital status and income level. It is important for every taxpayer to familiarize themselves with tax benefits available and to see if they might qualify; it could mean thousands of dollars in savings every year.
Some tax benefits require you to make a claim well in advance of filing. If you are married, you probably fill out one tax return, or if you have a live-in partner, you probably file separately. Some tax benefits extend to those who are partners and not married, so it is worth inquiring about your status for tax purposes. If you are on income support, Jobseeker’s allowance, or are receiving a pension, it is very likely that you will receive tax benefits, depending on where you live.
Freelancers can find quite a few tax breaks, although they are usually taxed more heavily than conventional employees. However, they can write off even minor purchases for their home office, even pens and paper, and saving a few receipts can mean substantial savings. Perhaps you remember Jerry Seinfeld joking about how he shoeboxes filled with receipts for mundane items in case he got audited. For a lot of self-employed workers, this is not just comedy, but reality.
There are tax benefits available for college students. There is a tax benefit of up to $1,500 for each student who is a Freshman or Sophomore, is pursuing a degree program at least part time, and who has never been convicted of a felony. There are almost as many tax benefits as there are life situations. Whether you are work are a CEO of a major corporation or own a lemonade stand, you can find tax benefits that are right for you.