There’s quite easy solution for this -use tax preparation software.
The program will every tax break you deserve. Then, it walks you through every credit and deduction by asking simple questions. Considering the above said. So IRS has strict qualifying criteria for any of the five filing statuses, as long as filing status determines many amounts on tax returns.
Most strategies for avoiding higher income tax brackets are on the basis of moving income and deductions to even out your taxable income over a period of years, or to avoid paying tax on some income until you retire. Similar to stock, more than one year, you may qualify for longterm capital gains rates, that are even lower, if you’ve held a capital asset.
Whenever using a process called income averaging, me taxpayers are allowed to smooth their income out over a three year period.
Follow Sally on Twitter. Interest. Sally Herigstad is a certified public accountant and personal finance columnist and author of Help! Of course she writes regularly at CreditCards. She is an experienced speaker and a member of Toastmasters International. While Surviving a Financial Cr, t Pay My Bills. RedPlum, and MSN Money. On top of that.