Five Tips to Trim your Taxes

Benjamin Franklin said, "Nothing is certain except
death and taxes," and some would respond that at
least death isn't an annual recurring event. Here
are some tips that might take the bite out of that
annual recurring event.


Tip 1.

A student or parent can claim up to a $2,500 student
loan interest deduction on their 2002 tax return if
their Modified Adjusted Gross Income (MAGI) is below $50,000
for individuals and $100,000 for joint filers. Above these
amounts the write-off is phased out.


Tip 2.

Reduce your taxable income by transferring a portion
of your salary into a flexible spending account (FSA)
set up by your employer. These accounts funded with
your pretax dollars can be set up for medical expenses
or dependent care, and as you incur expenses, the
fund reimburses you.


Tip 3.

A medically required diet and exercise program is
deductible if it is prescribed by a doctor to alleviate
a specific medical problem such as high blood pressure,
diabetes, arthritis and even obesity. A membership at
a gym or exercise club is deductible with the same prescription.


Tip 4:

A special break for refinancers; if you took a
cash-out refinance for more than the balance of
your previous mortgage and used some of the
extra money for home improvements, you can deduct
a proportionate share of the points on your tax return.
You can also deduct the balance of any unused points
from a previous refinancing.


Tip 5:

Take the time to add up your charitable contributions,
personal property taxes, interest from your mortgage
statements, real estate taxes, and state and local taxes
from your W-2 form. If the total is more than your
standard deduction, ($7,850 for married filing jointly,
$6,900 for heads of household, $4,700 for single filers,
and $3,900 for married filing separately), you will save
money on your taxes by itemizing this year. Note;
These figures are for 2002.
----------------------------------
Article by Naomi Knudsen
Would you like to KEEP more of your hard-earned money?
Subscribe to Money-Wise Newsletter a free weekly ezine
where we share money saving tips and strategies,
Contests, humor, and encouragement.
New subscribers receive 2 helpful ebooks!
Subscribe: mailto:mwn_subscribers-subscribe@yahoogroups.com
Or Visit: http://ahealthyyou.tripod.com