Income Tax Saving Tips

Every year, April 30th just comes too fast and it means last minute rush filing income tax returns. The IRS makes sure we fulfil our federal duties and that deadline is not negotiable.

Rushing just makes for more chances of unnecessary mistakes and hence throwing away money into the sea.

Don’t fill up your e-filing until you read these tips! A single tip will easily repay the finance cost of this e-book this year! And you can reap the tax savings year after year!

Don’t over-pay what you don’t have to!

The most important tip is to refer your past year’s records. Usually the deductions you are entitled remain the same e.g. medical insurance fees, deductions for personal expenditures, children’s education support, retirement or annuity deductions, rebates. Referring them whilst filling up your current year is a good and reassuring feeling.

The other top tip is ensure you have a filing system for this year’s deductions in a proper category, numbered and easy found format. This requires personal discipline as you need to file them the whole year around as you gather your receipts and filing them as soon as possible so that when April 30 cometh you are not surprised.

Another strategy is to fill up the e-forms on April 15 as a warm up so that you have 2 weeks to consider or reconsider what you can in order to justify your deductions. Then on April 30 you are ready and confident to submit the “send” button.

Income Tax Tips

Below is a simple list :

  • Deductions for charitable organisation whether cash or kind
  • Deduction when using your home as office for trade or biz
  • Compare if filed alone or joint with spouse is better
  • Interest paid on home loan
  • Books or educational subscription related to your trade
  • Insurance premiums hospitalization, life, annuity, etc
  • Tools purchased related to your trade including computer, phone
  • Sports equipment
  • Medical examination fees
  • Disability equipment
  • Alimony
  • Tax rebates
  • Broadband internet fees
  • Knowledge worker exemptions
  • Upgrading of vocational skills or degree programs
  • Tax free deductions in certain investments or higher education savings fund
  • Computer purchases

For further research, here’s some income tax filing tips for your financial health:

Of course always keep a back up copy of this year’s submission for next year’s use and to be read when the taxman shows up on your doorstep.

 

 

 

 

Incoming search referrals:

  • how to save income tax in malaysia
This entry was posted in How to save money and tagged . Bookmark the permalink.