Despite the hullabaloo about tax deductions and increases, nothing has much changed for the average women. So, what should a financially smart woman do? Get information about all the tax breaks and take advantage of them as much she can. Read along to know how women can save money on taxes and relax.
Gather your papers quickly
The sooner you collect your documents (W-2s, investment papers, receipts, etc.), the better. You’ll need these documents at the time of filing your tax returns. Once your papers are ready, it’ll be easier for you to file your tax returns within 17th April, 2014. Remember, the IRS will impose a penalty if you fail to file your tax returns within the deadline.
Plan for kid’s education smartly
It’s tough to be a woman, especially when you’ve to save for your kid’s education. On one hand, you need to save money for your kids uniforms and sneakers. On the other hand, you’ve to pay for your kid’s college expenses. 529 Plans allow both men and women grow money tax-deferred. They can withdraw money for education related expenditures without paying any tax. This implies, women can make their money grow without paying taxes every year. They won’t have to worry about paying taxes at the time of taking out money either.
File tax without paying any money
Find out if the libraries and colleges in your locality are organizing any voluntary events where students help to fill out tax returns without charging a penny. If your yearly income is around $57,000 or less than that, then you can just visit IRS.gov/FreeFile and opt for free electronic filing. If your income is below $50,000, then go for the IRS’s Volunteer Income Tax Assistance Program. This program helps you file your tax returns for free. You can call at 800-906-9887 and find out the centers (shopping malls, libraries and community centers) wherein volunteers are there to help you out.