Do You Need a Tax Strategy?

Are you one of the millions of Americans that keeps a big shoebox of all of your receipts from the year so you are prepared for tax season? While keeping all these statements and receipts can help you on taxes, they are not always the best tax strategy for you. In fact, for some people, it is a more profitable tax strategy to simply take the standard deduction and forego the itemized return.
The government offers an option for standardized deductions. You don’t need as much information. It only requires checking a box where you agree to input your income and take the deduction that is deemed correct for that current tax year. This tax strategy is often effective if find that you don’t have a lot of deductions to itemize on your taxes.
One of the best ways to know if your tax strategy should include itemized deductions is to consider how many deductions you actually have. Some common tax deductions include a mortgage deduction that allows the interest you pay on your home mortgage to be deducted from you taxes. There is also a medical tax deduction for people who pay above a specific percentage of their taxes toward medical bills. Charitable gifts and expenses from education can also be deducted. If you have some kind of loss such as disaster, death, or theft, you may be able to deduct those losses from your taxes. All of these deductions should be figured in as part of your tax strategy.
There are many tax deductions available. Many tax professionals suggest itemizing your taxes and comparing the money you would get back to the return from a standardized deduction. It is well within your rights to fill out your taxes either way. In fact, a smart tax strategy ensures that you pay the least amount of taxes that you can.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.