It's understood that everyone would love having to pay less taxes, but rather than looking for gray areas and other loopholes, it's easier to concentrate on managing your taxes as efficient as possible. With a few tips regarding your personal life and business, you can make each years taxes a little lighter on your pocket when you sit down to complete your return. The tax laws in New Jersey are the same as those set down by the IRS.
One practice that can be useful is to keep a logbook of your mileage you have travelled so you can accurately deduce your travel deduction. Any travel that is business related, including prices that you paid to drive to and attend conferences and seminars are 100% deductible. Other deductible travel costs are taxis, airfare, hotels, car rentals, tolls, tips and parking fees.
Keep all the records you can find, such as statements and invoices, regarding medical expenses that you know are not covered through your medical aid. You can then get a deduction on assessment of those expenses. Depending on your salary, some medical expenses, including dental insurance and health insurance premiums can be found to be deductible. This deduction has a limit, as it can only be applied to expenses that cost more than 7.5% of your income.
You can make your life much easier by making sure you don't miss a single deduction if you simply organize your records early on in the year and keep it properly updated. Having your records organized not only makes it less frustrating for you to do your taxes, but it also means that you can explain an item on your form that the IRS might have questions about. You won't have to pay any additional taxes or penalties for expenses that the IRS deems unsubstantiated.
A good reason to consider filing your tax return forms electronically is because you can get your return processed in half the time it takes for a paper return to be processed. The IRS E-file can make the entire process a lot easier and faster as it identifies any issues with your forms instantly and then gives you immediate responses and a confirmation with regard to your return.
You need to be aware of the deadlines for forms so that you can avoid penalties. You should submit your tax returns before the date that is specified by the IRS. You can request an extension for the submission of the return only if your tax affairs from previous years are up to date.