It's tax time!<\/p>\n\n\n\n
At least it was for the Hill Family this weekend. We cranked out our taxes while the kids rode their bikes around on an unexpected 60-degree weekend. Equipped with our laptop, our nerdishly organized tax document folder and with some surprisingly cooperative kids, we finished in just under 3 hours.<\/p>\n\n\n\n\n\n\n\n
As I was going through all of the steps, we came across quite a few areas where we were maximizing our tax savings.<\/p>\n\n\n\n
For the past few years, we've been using a CPA to help us file our taxes. She did a fine job, but I had a goal in 2016 of becoming more familiar with the process so we could do it ourselves. With all of the tax software options out there and our non-complex tax situation, I figured that I would give it the old college try. I was pleasantly surprised with the results!<\/p>\n\n\n\n
Preparing the initial documents for our former CPA took the same amount of time that it took me to complete all of our taxes this weekend. In addition, we saved $150<\/strong> compared to last year! TurboTax<\/a> was our weapon of choice. It was simple, intuitive and quick.<\/p>\n\n\n\n Although we enjoyed TurboTax, there are other great tax software options out there to consider like\u00a0HR Block\u00a0and\u00a0Tax<\/a>Act. All three have free options for first-time filers or college students as well as more advanced versions for people who own a small business.<\/p>\n\n\n\n Last year, I took full advantage of my 401k at work by contributing the maximum allowable amount of $18,500. Not only do I get a match on 100% of my contributions at my job, but I got some nice savings on my taxes as well.<\/p>\n\n\n\n Since my 401k contributions are contributed pre-tax, my taxable income went down by $18,500. This allowed me to pay less taxes this year. Increase retirement savings. Decrease taxes. Score!<\/p>\n\n\n\n2. Max Out 401k Contributions<\/span><\/h3>\n\n\n\n