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Tax

Five Ways To Inflate Your Tax Returns

Increasing your tax return is a great idea, and there exist many ways you can do it. It can be helpful and even money saving. After plumping up your tax refund, you will be delighted knowing that you will receive thousands of bills soon. You can use the money to make long-term investments. It might not be the most practical way to save, but it can be productive. Discussed below are some of the ways to inflate your tax refund.

 

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Modify your withholding

When you begin your job, you will be required to fill out a W-4 form to specify the number of allowances you wish to claim. If you demand fewer allowances, your employer will withhold more money for taxes, and the chances are that your tax return will be larger. It’s worth noting that its possible to adjust the allowances you want to ask anytime to alter how much is withheld.

 

Reflect enumerating your deductions

Most taxpayers take the standard deduction when preparing their returns. What they don’t understand is that it lessens their taxable earnings and can quickly advance their refund. If you have enough qualifying deductions, you will be able to do well than the regular deduction. Make sure that you keep good records of your spending annually like medical expenses, work-related expenses, charitable contributions, local and state taxes paid just to mention a few.

 

Look into deductions that don’t require itemizing

Keenly check any extra subtractions and tax credits that you wish to challenge since they can contract your taxable income. Such deductions exist for expenses like alimony payments, IRA contributions, student loan interest paid, self-employment taxes and more. Tax credits diminish your taxable income and are available for all things like energy efficient home improvements, education costs, child adoption and much more. A specifically useful credit, for those who qualify, is the earned income tax credit, that shrinks some peoples income by more than six thousand dollars.

 

Make contributions to retirement accounts

By contributing to the traditional 401(k) or IRA account, you can cut down your taxable income significantly. For instance, IRA contribution limits were $ 5,500 for most people and $ 6,500 for seniors over the age of 50 in 2016. On the flipside, the 401(k) contribution goals were $ 18000 for a huge fraction of people and $ 24,000 for elders beyond the age of 50. If you can part with $ 10000 in such accounts annually, you will significantly decrease your taxable income, to raise your tax refund by a significant amount. Its worth noting that both IRA and 401(k) accounts have their advantage, providing tax-free withdrawals during retirement. Weigh your options carefully before making your decision.

 

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Settle some of your next year bills early

For instance, you can decide to pay your mortgage interest as well as property taxes in advance. If you were to make the payments in January, you could do so in November. It is an excellent way to boost your deductions and thus increase your tax refund at the same time. You can also make charitable donations or pay for medical costs in advance.

If you are expecting a huge tax refund, then you can qualify for tax loans which you pay for after getting your refund.

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Banking

Advantages Of Online Banking

Online banking is gaining more popularity with time. It enables you to do almost all banking activities without having to go to the bank in person. Some of the banking activities include the transfer of funds to different accounts, paying utility bills, and checking your statements among many other things. Many people are opting to bank online due to the variety of benefits that it offers. Some of the top benefits that you are likely to enjoy are highlighted below.

Top benefits of online banking

Convenience

Online banking allows you to transact without having to visit the bank in person. All you need is an internet connection and the proper authorization, usually the account name and password. There is no commuting costs involved, no queues, or any other inconveniences experienced with the traditional way of banking. You also do not get to worry about business hours as online banking works 24 hours per day all year round. When it comes to paying bills, you will not have to deal with stamps, lost bank checks, and such problems. You get to pay your bills on time with a process that can be as easy as pressing a key.

Easy filing

Online banking does not involve any paperwork. Every transaction that you make is recorded in digital format online. You can check your account history and view all the transactions that you have ever made. It makes it the fastest way to check if a transaction made has cleared your account. Some banks also allow you to view pending transactions made during the day. This gives you an opportunity to cancel any transaction that you did not authorize or correct any errors that you might have made while transacting. A printout of the history can also be verified by the bank and used as a receipt, in case one is needed.

Quick alerts

tfugytk6yudrjt6gyOnline banking allows you to get instant alerts and notifications on anything regarding your account or the bank in general. This allows you to get timely information and act on it as appropriate. Examples of notifications that you receive include the launch of new products and activity on your account.

Good security

Online banking provides an extra protection layer against fraud, particularly those that deal with identity. No one can get access to your account unless he has your authorization and the relevant credentials. It is also an opportunity to monitor your account consistently.…

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Investments

Factors To Consider When Investing In A Startup

Investing in a start-up business comes with many risks. This is because the business has not yet proved itself profitable and can result in you losing whatever you invest in it. The good news is that there is a lot that you can do to mitigate the risks. All you need to do is get good answers to the right questions. Some of the factors to consider, which will work as your guide, are highlighted below.

Main considerations to make

Scalability of the company

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Scalability simply refers to the ability of the company to grow its revenues quickly while keeping the expenses down. This will result in good margins. There are some business models which have great scalability, such as those that involve mass production. Those that require customization or technical installation expertise, on the other hand, are not easily scalable.

Attraction to potential acquirers

The company should have an exit strategy right from the beginning. You should thus ensure that the company would please the potential corporations that will acquire it. Most corporations prefer ventures that have high growth and great profit margins. The products or services should also align with the strategies that they have. Ensure that you understand who is likely to buy the company, the reasons as to why they will be interested, and the duration that it might take before the acquisition.

Anticipated returns

rkuyudr6t7gyr6t7yA potential exit must come with a return calculation, which should be based on the amount that you invest, company valuation, percentage of stock ownership, and the purchase price of the acquisition. This makes it important to consider not only the potential selling price of the company but also whether additional rounds of investment might have a negative effect on your ownership percentage. For example, if you wish to get ten times return on your investment, you should consider a company that will not require much additional capital. Keep in mind that the calculations you make are only theoretical and things may be different when it comes to actualization.

Management team

For you to invest in a company, you should ensure that it is led by a solid management team. The managers should have relevant knowledge, experience, and skills among other features, which are useful in growing the company successfully. The team should display confidence in what they do and deliver results promptly. Poor management may result in loss of your investment capital.

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