Should you claim more on your tax form?
Taxes are here to stay. A very wise old man once said that there are only two constants in this life: death and taxes. He might have been right. Taxes aren't going anywhere. We know that they will always be there anytime there is any form of government, and people always tend to form governments. So while it is a major pain to pay them, taxes are very important. They are part of what keeps a civilization working but they are also a plague on that civilization. We all know that we would much rather not pay taxes. Because we don't know if the tax rates will be raised or lowered. But given that we know that they will always be here, we should probably learn some things about them and figure out how to avoid them when possible. There are many ways to avoid paying lots of taxes. As you might know, there are things like tax deductions and exemptions that allow you to pay fewer taxes. So should you claim more on your tax form?
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This is actually a fairly personal question and has allot to do with your particular situation. For example, if you are feeling particularly patriotic you might not want to take any exemptions. This means that you would pay the full amount to the government, thereby supporting government programs. However, if this is not your desire, then you might be limited in what you can deduct from your taxes by your situation. There are particular things that can be deducted. Children are counted as a deduction, as are mortgage and car payments. There are several other possibilities such as adopting a child or making a major contribution to a charity that can be counted as deductions. Another possibility is in contributions to a major retirement fund, such as an IRA or a 401K. Many people contribute to these funds because it lowers there income, hence lowering their taxable income while increasing their retirement fund. If you are self employed you can also deduct any expenses that accrued through the running of your business. This could be things like office supplies or gas spent driving to meetings. There are all sorts of possibilities.
So now that you know something about the many things that can be deducted, should you claim as much as you can on your tax form. Once again this is a personal decision. You want to be fully honest about your exemptions. Only claim what you absolutely can prove you spent. If you are dishonest you could easily be put under investigation by the IRS, which is not something you want to do. This would mean having to pay back taxes, and particularly to suffer some sort of criminal penalty.
Otherwise it seems like you would be crazy to not claim as much as you can on your tax form. If you are feeling particularly patriotic then you should maybe not take as much in terms of exemptions, but otherwise there is no reason why you should not claim what is your right to claim. The government allows these sorts of exemptions for a reason. They often expect you to take them.
Learning some basic things about exemptions, deductions, and the tax code could save you thousands of dollars in the long run. Given how hard the economic situation is for most families and individuals, you should probably think about taking whatever exemptions you can. Although taxes are here to stay, you can learn more about them and find ways to pay them less.
