Managing your personal finances is one of the demanding yet highly essential practices of life. Proper finance management at a personal level can make all the difference between leading a financially stable life and coping with debts every now and then. After receiving that much-awaited paycheck, the first thing you want to look at is the kind of deductions you are subject to and the net pay you are left with.
The next mandatory thing to look at is whether you have paid your state and local taxes. There are various levels of taxes, including real estate taxes, for which you may want to look at your Form 1098 or your end-year tax summary. If you are mandated to pay the state and local income taxes, you should look at your Form W-2, which estimates the tax payment you need to make to the authorities. Should you be liable to pay a sales tax, then you should make the necessary deductions involved.
A crucial element of your personal finance planning involves factoring in the net amount of money you have donated to charity. Donating to charity organizations, such as food banks, religious organizations, and non-profit organizations, makes you liable to receive a tax cut. Thus, you should look at the amount of money or item-equivalent you have donated so far and make the necessary itemized deductions.
Sometimes, out-of-pocket medical expenses are qualified to be deducted from your tax payments. This includes medical expenses that you paid out of your own pockets, including doctor visit fees, chiropractor fees, lab fees, or even medical supplies and refills. You may also want to deduct the monthly premiums that you make for your health insurance. Taking your time to consider all the medical expenses that you may have incurred in the course of the year will ensure that you benefit from reduced tax payments.
Lastly, if you live in an area that the federal government declares as a disaster area, you stand to benefit from various disaster protection provisions. To qualify for this program, you must be living in an area regarded by FEMA as a disaster zone. Any insurance premiums you pay towards protecting your property are, therefore, liable for reimbursements or tax relief. You may want to check the FEMA website for a list of disasters and regions where disaster protection is offered.