Tax breaks are basically a return or a concession given by the government. Including these breaks increases refunds on tax and lowers tax bills. A few ways to get some tax breaks are:
- Health insurance – When it comes to medical expenses the budget exceeds the pocket. The tax department gives concession to the cost of insurance premiums. But your deductible medical expenses need to exceed 10% of your income in order to get a tax break.
- Self-employment – If you're self-employed, you usually prefer to be responsible for your own health insurance, which at times might help you deduct 100% premium costs from your taxable amount.
- Charity – You can deduct the cost of goods or money given to a charitable foundation. Out of pocket expenses do qualify. For example, you organise a weekly buffet for a charitable cause, the cost for the ingredients get deducted.
- Business products – If a product is used to benefit your business, and you show concrete base and reasoning for it, you usually get to deduct it from your business income.
- Sales tax – You get an alternative to deduct state income tax or better-known sales tax off the federal income tax. This will save you a lot of money. A big advantage to the state that doesn't have its own income tax save huge amounts of money.
In case you have an issue doing it on your own you can hire the best to help you from accountants in Pimpana. They will be able to help you out and get tax breaks.