Tax day is approaching, and for those who’re like most individuals, you may be overlooking deductions that would prevent cash.
In our newest podcast episode, tax strategist Natalie Kolodij joins us to disclose frequent tax misconceptions and share methods that would probably decrease your tax invoice.
“The tax code is 70,000 pages,” Natalie explains. “There’s a lot. So I actually prefer to have folks deal with a handful of issues to be conscious of.”
For W-2 workers who typically have fewer tax benefits, Natalie highlights a number of missed deductions. When you reside in a state with out earnings tax (like Florida or Washington), you’ll be able to deduct gross sales tax as a substitute — particularly on main purchases. Don’t overlook about private property taxes on automobiles, boats or RVs both.
Medical bills will be deductible, however solely quantities exceeding 7.5 % of your adjusted gross earnings. Natalie suggests consolidating elective procedures right into a single tax yr to maximise this profit.
Charitable deductions supply shocking alternatives too. Miles pushed whereas volunteering, bills from fostering animals, and even house renovation supplies donated to organizations like Habitat for Humanity can all qualify. Natalie additionally explains how “bunching” donations in alternate years can considerably enhance tax financial savings in comparison with giving the identical quantity yearly.
The interview tackles main misconceptions about promoting your major residence. Whereas many consider residing in a house for 2 years makes all good points tax-free, Natalie clarifies that any “non-qualified use” durations (like when it was a rental property) can nonetheless be taxable.
For small enterprise homeowners and actual property buyers, Natalie recommends monitoring all business-related bills — even seemingly minor ones like industry-related books or instructional supplies. She emphasizes the significance of correct record-keeping and having separate accounts for enterprise bills.
As we navigate tax legislation modifications following the current election, Natalie’s recommendation rings true: keep flexibility in your tax planning and take into account working with professionals who concentrate on your particular state of affairs.
Timestamps:
Notice: Timestamps will range on particular person listening gadgets primarily based on dynamic promoting run instances. The offered timestamps are approximate and could also be a number of minutes off attributable to altering advert lengths.
(0:00) Present introduction
(2:00) Intro to tax day dialogue
(2:46) Frequent tax financial savings for W-2 workers
(4:12) Customary vs itemized deductions defined
(5:46) Usually forgotten property tax deductions
(6:58) Gross sales tax deductions for no-income-tax states
(9:06) Medical expense deduction thresholds
(12:53) Charitable giving methods and missed deductions
(17:51) Bunching donations in alternate years
(22:20) Residence sale tax exclusion misconceptions
(30:44) Tax withholding modifications and customary errors
(44:35) Bonus cost tax myths debunked
(52:52) Discovering the suitable tax skilled
(1:02:02) Small enterprise and actual property investor ideas
(1:09:38) Greatest practices for tax file conserving
(1:15:14) Making ready for potential tax code modifications
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