Income Tax Tips
Each year as the time for filing income tax nears all the people gets busy in finding the right person who can be of some help to them so, that filing tax becomes an easy task. We all know but disagree to a fact that each one of us want to pay less tax. But a single piece of advice would be that instead of hiding facts its better to know few simple tips that would be of immense help in managing the tax transactions and getting away from the burden of filing tax.
These simple tips actually spreads across certain expenses and maintenance of few vital records that we need to know and must ensure. To keep a track of travel expenses one can opt to keep a mileage logbook of total distance traveled. All expenses that are incurred due to business purposes are completely deductible it encompasses costs of hotels, airfare, taxis, and car rentals, parking fees, tolls payments and tips. With regards to medical expenses, one should keep records of the medical expenses which do not come under the cover of medical aid. The premiums paid for health insurance and dental insurance are subjected to tax deductions depending on the income of the individual. One may try for converting non-deductible personal medical expenses into a lawful business expenses.
One should be aware of the fact that entertainment allowance for personal use is non- deductible. However, ordinary and essential business meals and entertainment expenses up to 50 percent is deductible. Keeping a tax record and updating it each year is a better practice which reduces confusion and frustration to large extent. Avoid refund anticipation loans as much possible. Electronic filing of tax returns downsizes the time to round about 50 percent as compared to paper filing.
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