The time of year for tax returns is no respecter of persons. It is hard to swallow that it hits us just after the most liberal shopping time of year of the year when we max out our credit cards to keep up with the Jones'. For most people just gathering the basic information to prepare their income tax returns makes them tremble a lot. Then there are the early filers who finish their tax forms knowing they have a cash refund coming refund. Take note, while many people do get cash back because of the tax deductions and tax credits they can use to lower their taxable income. It is a good idea to avoid doing everything else before gathering the proper papers for your tax returns. If you have to consult <a href="http://www.taxhelpvault.com/recommends/page64.html">tax planning books</a>, do so. The longer you delay your filing in the tax time of year means you will give up some deductions and  credits that run out. However, convey you tax help on a regular basis so you can get down your tax planning, tax filing, and follow through to benefit from the tax deductions you have coming to you. 


<h4>Deductions and Exemptions Will Lessen Your Income Tax Liability</h4>
<p>Preparation and filing of income tax can be a difficult task  when you don't have any know-how about it. The tax law is  sometimes hard to grasp. If you have knowledge about income  tax accounting, then it will be much easier. But in case  you're lazy doing your taxes, you can always seek the help  of an expert. Tax specialist will prepare your taxes and you  will have no worries at all. However, you should not always  depend on experts. Paying for income tax is one of your  responsibilities as a citizen of your estate. You should be  aware of how to prepare your taxes.</p> <p>You'll never know if you can't anymore afford the services  of a professional. What is important in the preparation is  the amount to be included in the gross income as well as  deductions and exemptions. You should be familiar with the  forms to be filled out. The calculations can be made easier  by using tax software. Even experts use programs to make  their work easier and faster. The choice is still yours-  whether you do it manually or automatically. Everybody's  concern is to lower their income tax returns. You can  achieve it by availing all the necessary exemptions and  deductions.</p> <p>The government has designed the tax exemption policy to make  paying not burdensome to people. But there are  qualifications in order to be exempted. You will have to  read about the policies regarding exemptions in your estate.  All countries give exemptions to qualified individuals. Some  factors to be considered in the exemption policy are the  taxpayer's income, age, and assets. Examples of exemptions  are personal exemptions. You can claim personal exemption on  yourself, your spouse and your dependents. With regards to  dependents, you can have two exemptions- qualifying children  as well as relatives. A qualifying child can be your child,  adopted child, foster child or even your siblings who will  meet the following requirements like the child has the same  residence as yours, the child is under 19 years old and the  child is still dependent for financial support.</p> <p>Qualifying relatives on the other hand are your relatives  other than your qualifying child. There are still lots of  exemptions you should be aware of in order to lower your  liability. Qualifying test should be met to be able to avail  of the exemptions. Another factor you should consider in  your income tax is deductions. Deductions are also somewhat  similar with exemptions. Deductions are items deductible in  the gross income. You should be familiar with all the  deductible items. It's better to maximize all the deductions  in order to lower the amount of tax liability. You have the  option to use itemized deductions or standard deductions.</p> <p>If your itemized deductions exceeded your standard  deduction, then go itemize it. You should check all your  records and receipts for payments of itemized deduction  expenses. If you used itemized deduction in the first year  and want to change to standard deduction, you may do so. But  it should be within the three year period allowed in the  amendment of your return. Knowing all the deductions and  exemptions allowed by the government is a way of reducing  your income tax return to a much lower amount. So better be  familiar with the terms.</p> <p>The author of this article <a target="_new" href="http://twitter.com/RickGoldfeller">Rick Goldfeller</a> is an underground  Financial Analyst who has been successfully running  campaigns for several wealthy clients. Rick finally decided  to go public and share his knowledge and experience through  his website <a target="_new" href="http://www.finanzine.com">http://www.finanzine.com</a> You can sign up for his  free newsletter and join his coaching program.</p>

It is even more important to start early when doing <a href="http://www.taxhelpvault.com/recommends/page64.html">LLC tax planning</a>; you will save both time and money.
