How to Lower Your 2009 Taxes
As the current year is approaching towards the fag end, many of us would be interested to know how to lower the taxes. Well, there are certainly some steps or procedures that you can follow in order to cut down the amount of your taxes. It just needs a bit of awareness and knowledge, and the results can make you amaze, and why not? You are saving a few bucks from your hard-earned money. Now, let’s see what the procedures are. Deduct Healthcare Expenses If you need to spend a good amount of money on your medical bill, you have the option to do this. If you spend more than 7.5 percent of your adjusted gross income on medical bills, you are entitled to deduct the excess amount and save taxes. It includes all the healthcare expenses including medical, dental, and prescription drug expenses as well as health insurance premiums. Moreover, if you have qualified high-deductible health insurance, you can use a Health Savings Account (HSA) to get deductible after-tax contributions up to $3,000 for single coverage and $5,950 for family coverage for the year 2009. For 2010, the amount would be $3,050 and $6,150 respectively. Utilize Stimulus Tax Breaks Almost everyone can take the advantage of stimulus package, which offer tax breaks. It will also cut down the amount of your taxes. Buy Now to Save More There are certain items that can give you significant tax deductions if purchased in 2009. For example, you can deduct 10% (up to $8,000) of the purchase price of your new house if you buy it on or before December 1, 2009. However, only those with their adjusted gross income under $75,000 are eligible for that. The limit is $150,000 for the married. Similarly, in the event of buying a new car, you can deduct sales and excise taxes up to $49,000, no matter whether you itemize your taxes or not. However, for availing this opportunity, your adjusted gross income must be under $125,000 ($250,000 for married). Make invest losses if you have to any You can sell a part of your taxable investments if it seems to be a loss. If your net losses surpass your net gains, you can deduct only $3,000 per year, but can carry forward the extra losses to the next years. |
I had no idea that a high deductible health plan could be used to do this as well.
Great tips! Be sure to take advantage of minimizing your tax dollars by contributing to your HSA. Save the most money by electing a high deductible health plan
and partially self funding the difference with aggregate wrap
stop loss insurance.
Thanks. Indeed a good value addition to my post.