Tax Tips that will save you Money

Now I'm not a tax professional even though that would probably be a pretty good profession to be in this time of year.

1.Out-of-Pocket charitable contributions
You should keep as accurate records as you can. If you are donating an item, take a picture of it before you get rid of it. Also, if you drive your car for charity, you get like 14 cents per mile!

2. Don't forget about education deductions
I'd have to say this is one that I used to forget until I had already filed but it all worked out (refer to #5). Two deductions you may want to check into include deducting up to $4,000 per student for tuition and fees. Taxpayers can also deduct up to $2,500 per return for interest paid on student loans.

3. Take advantage of energy credits
New windows? New exterior door? New furnace or air conditioner? If you did any of these things in 2007, you could be in line for a credit. It might not be a huge chunk of cash, but unlike a deduction, tax credits reduce/increase the bottom line dollar-for-dollar.

4. Remember to include your Social Security number
By forgetting it, your tax return will be delayed which means less time drawing interest on it!

5. It's not too late...for at least three years that is.
Unless you are super organized, keep everything and write everything down, you are probably going to forget something. You have three years to file an amended return.

Now, I have a question! Why can we only file an amended return for as far back as three years but the government can audit us back five? It happened to me 7 years ago at the city level and I still don't have an answer.

Update: You can also file your federal for FREE at TaxAct!