| We all love to pay less tax, but most of us | | | | expenses, including business meals. |
| eventually end up paying more and receiving very | | | | Medical Expenses |
| little tax refund. Probably, the main reason behind | | | | If there are some medical expenses that your |
| this is that our entire focus is mainly on how to | | | | medical insurance did not cover, you should keep |
| manage our tax affairs in an efficient manner. We | | | | all the rated statements and invoices so that you |
| often tend to overlook the gray areas and the | | | | could claim a deduction for the same on |
| loopholes, which eventually prove to be very | | | | assessment. If you are serious about increasing |
| costly. Following are the top five ways that will | | | | your tax refund, you should also keep in mind |
| make things much easier on your pocket while | | | | that even your dental insurance and health |
| you are filing your tax return. | | | | insurance premiums might also be considered for |
| Tax Records | | | | deductions up to 7.5% of your overall income. If |
| Try to have organized records for tax related | | | | certain items in medical expenses are |
| issues and keep all the figures are thoroughly | | | | non-deductible, the best way to deal with the |
| updated. Make sure that no deductions have been | | | | same is to turn the same into a legitimate |
| missed in the record. It will not only reduce your | | | | business expense. |
| workload at the time of filing the return, but you | | | | Travel Expenses |
| will also be able to answer all the questions | | | | In order to calculate your travel deductions |
| efficiently that IRS may ask. Always remember, | | | | accurately, you must keep detailed mileage report |
| if you are unable to explain those questions, you | | | | of the distance traveled. For example, if you are |
| may end up paying additional taxes and penalties. | | | | working at two places, the cost of traveling form |
| Entertainment Expenses | | | | one office to another is considered as deductible. |
| If you want to increase your tax refund, you will | | | | But, if you are working at a single place, the cost |
| also have to be very careful about entertainment | | | | of traveling to your office from home will not be |
| expenses. You should keep in mind that you | | | | deducted. It will be treated as a personal expense. |
| cannot claim deductions against entertainment | | | | Deductible travel costs may include car rentals, |
| expenses. Therefore, if you do not want to have | | | | taxis, airfare, hotels, tolls and tips. |
| a tax liability on assessment, you will have to | | | | Overall, you no more need to be nervous about |
| make sure that your employer is knowledgeable | | | | the tax season. If you keep in mind the above |
| about the laws pertaining to entertainment | | | | income tax tips, you will definitely be able to take |
| allowances and that all allowances have been | | | | full advantage of all the tax breaks you are eligible |
| taxed in full. However, you may be allowed a | | | | for, which will eventually increase the amount of |
| 50% deduction on essential entertainment | | | | your tax refund. |