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Imagine your least favorite relative abruptly knocking at your door ( let’s say uncle Sam) taking away all your savings and profits. But, sometimes, he has a specific date in mind, say April 15th. But, if you miss that date, you will lose your savings plus accumulate an extra penalty. And if you remember, the profits are all yours.
Keeping this context in mind, we are talking about your financial health. A proper check on dates and deadlines can help you escape from hefty fines and penalties. This article will be your reminder to file your taxes and earn maximum profits this year. It has dates and deadlines for your information from the start of the tax year ( January 1st) to the filing date ( or deadline) April 15th.
Some of them might also want some extension, October 17th. So whether you are a complete novice or a pro seasoned tax payer, this guide is for you. So, next time you hear the knock, fret not! Read this and avoid all the hassle of remembering complex date sheets, saving you this tax season. Remember paying tax on time also offers you advantages to save money and add to your assets.
Some of things to keep in mind…
Deductions
These refer to any expenses that are subtracted from your assets or your taxable income. These deductions can lower your bill or sometimes your profits also. Some of the common deductions include charitable donations, state, local taxes or mortgage interests.
Credits
These are often referred to as your dollar to dollar reductions from your tax liabilities. Credits are good for those with low or middle income classes. Some credits include child tax credits or earned income tax credit ( EITC).
IRAs
Individual retirement accounts are ones that can save your retirement amount and help you get a break for paying hefty taxes. IRAs include traditional as well as Roth ones. Traditional ones help you to minus your contributions from your income. The latter helps you multiply your income until retirement.