How To Maximize Tax Deductions and Minimize Audit Chances

Woman Reading
Arrow

Deductions reduce your tax liability by lowering your taxable income. These are usually expensed you incur during the year that can be subtracted from your gross income to determine the exact amount you need to pay.

Books

Tax Deductions

Arrow

Tax credits, on the other hand, are a lump sum dollar amount given to eligible taxpayers, directly reducing their tax bill.

Tax Credits

Man Reading
Arrow

Maximizing Tax Deductions

1. Write a checklist 2. Assess your finances 3. Leverage your Roth individual retirement account (IRA) 4. Segregate business and personal records 5. Stay up-to-date on revisions 6. Avoid acquiring debt

Arrow

Minimize the Chances of Being Audited

1. Stay honest 2. Evaluate your figures 3. Be realistic when itemizing deductions 4. Opt for online filing 5. Hire an experienced CPA

Arrow

Maximize Tax Deductions and Minimize Audit Chances

Man Reading
Arrow