Monday, March 12, 2012

How much I saved on my taxes

I completed my taxes over the weekend.  Yay!

I used my Saving Money on Taxes and Saving Money on Charitable Deductions tips to help me save money.  Specifically, I moved as many deductible expenses into the 2011 tax year.  I paid 13 mortgage payments, I paid my property taxes twice in 2011 - once in January and once in November - and I donated as many items as I could to charity  in 2011.  When I did my taxes, I itemized my deductions.

If I hadn't done this, I wouldn't have had enough deductions to itemize, and I would have had to take the standard deduction.  Next year when I do my 2012 taxes, with only 11 mortgage interest payments and no property tax paid, I will take the standard deduction.  Then in 2013, I will repeat what I did in 2011.

How much did this save us? Just for the heck of it, I ran my taxes both ways: by taking the standard deduction and by itemizing.  By itemizing with this method, we saved $585!

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