Best Tax Software for 2016 Returns?

[DRU]

Originally Posted by Sorce

If I had a business or anything I'd probably go the CPA route but for basic stuff it works for me. I like that it imports previous years and that's what I started with so I stick with it.

If you don't have a business, you should create one. The tax benefits / savings will put thousands back into your pocket each year.

Seriously, it can be anything. Make it official and start tracking your expenses. Turn your after tax expenses into before tax expenses, and you'll save a bunch. If you have kids it's even better. Instead of paying taxes and then spending money on your kids, pay them through your business (which gives you the deduction) and then let them pay for their own stuff using their own bank account / debit cards. School supplies, lunches, clothing, sports stuff...all the stuff you spend on the kids anyway.

The first $6k you pay a kid under 18 is completely tax free. You get the deduction, so for example, if you're in the 25% tax bracket, that's $1500 your putting back into your pocket. You don't even have to pay FICA on that money, and the kid doesn't pay any income tax on that first $6k either.

What's cool, too, is that since they have a job you could open an IRA for them and get them started at a very young age with retirement savings. An early start on compounding is never a bad thing. So then, if you have the cash anyway or if the business is doing well enough to generate it, you can pay the kid another $5500 and get the deduction, and then that can go directly into the IRA tax deferred. So now you're getting a $11,500 deduction ($2,875 back in your pocket), and the kid has a solid foundation to build from as they grow up and are ready to become financially free.

Another example is your cell phone. Not uncommon for people to have $100/mo ($1200/year) phone bill. Again, assuming you're in the 25% tax bracket, that's another $300 you'd be putting back into your pocket.

You do this with auto expenses, home office, dining and entertainment, travel, etc. and you can save thousands. Then you can put those thousands towards debt, or if you're out of debt, back into the business, or towards buying other assets that generate more positive cash flow.

Owning a business is a fantastic way to "get ahead" because of the tax savings. So worst case you're pocketing the tax savings, and best case it takes off for you and becomes a solid secondary source of income or even a primary source.

Start a business!!!