The Real Deal: Expert tips to save money on tax preparation and uncover missed opportunities

By getting organized and exploring all available deductions and credits, taxpayers can maximize their savings potential.

Kristie Reeter

Mar 15, 2024, 10:57 AM

Updated 29 days ago

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News 12's The Real Deal is here to assist you in saving money on your tax preparation costs and uncovering potential missed opportunities for savings.
As Caleb Silver, Editor in Chief of Investopedia, highlights, the tax burdens in New York and Connecticut outweigh those in neighboring states. Silver notes, "The tax burdens in New York and Connecticut are significantly higher than they are in New Jersey and even Pennsylvania."
Abdul Chowdhury from Dynamic Accounting Services stresses the importance of organization in maximizing savings. He warns against the common mistake of filing taxes prematurely, before receiving all necessary documents. Chowdhury advises, "One of the mistakes we make is that we just want to get the refund and we just go ahead and file early but next thing you know, you received an extra 1099, an extra W2 that you worked for a couple of weeks."
To determine the best approach for your tax return, Chowdhury suggests considering its complexity. He states, "It all depends on how complicated your tax return is." For simpler returns, New Yorkers can take advantage of the IRS's free online tool, Direct File.
Chowdhury also emphasizes the importance of accounting for all deductions and credits. He explains, "If you are going to college you could get American opportunity credit, if you are paying for college expense. Lifetime learning credit if you are going to grad school."
Furthermore, Chowdhury points out a commonly overlooked tax benefit related to caregiving. He reveals, "If you are receiving income from a state Medicaid waiver program right, your income is non-taxable for federal and New York state." This exemption can result in substantial savings for taxpayers.
By getting organized and exploring all available deductions and credits, taxpayers can maximize their savings potential.


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