Get Ready for Tax Time
In today’s economic climate it pays to be smart and could mean the difference between an okie dokie tax refund and a real nice fat one.
Lots of people have taken jobs where they get tips: waitress, waiter, delivery person, etc… You’ll want to keep track of those tips. Not only are you supposed to claim them, but it could make you thousands of dollars. The figures vary every year, so I won’t bore you with the numbers but in order to qualify for the earned income credit, you have earned income. Right?
Well, up to a certain point, the more you make, the more earned income credit you get. So, claiming that extra $5,000 in tips could net you a tidy sum when it comes to tax time. Every little bit helps. I’ll tell you another secret.
We keep all our receipts, that way when we do our taxes some things that we didn’t think were tax deductible were actually deductible. I just put them in a folder marked business or personal, but I always check back through the personal stuff, just in case I missed something.
If you find a mistake, you can go back and amend a return for three years.
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