55. Save/Make $3,000 per year – Get the latest tax credits and tax deductions, including those for lower-income people (like EITC)
There are many tax credits and tax deductions people don’t claim, like the EITC (Earned Income Tax Credit), tax deductions for unemployed, house isolation tax credits, etc.
On an annual basis, you could get $3,000 back for claiming tax credits, check out Google and search for “Tax Credits and Tax Deductions for Unemployed or low-income people”.
Check for most tax credits and benefits on this site: (you will be able to search for all possible tax credits and benefits based on your profile)
Also, you could get subsidies or tax credits for heating. As a result of lower family income and (joint) tax bracket, you may get higher net wage compared to gross wage (for the working person), also lower tax bill or taxes returned with deductions or tax credits, see the EITC.
Get on food stamps too if you are eligible for it, take every government-advantage a low-income could bring with it. 30% of Americans live in poverty, the smart ones make more (or save more money) being unemployed by taking advantage of the tax credits and tax deductions the government offers than those doing a 9-5 low-payed job and have to pay for a car and fuel costs to go to work back and forward and have to stress out from their stressful job in expensive clubs during the weekend wasting their hard-earned money or blow it on women.
It is when you become a man from the poor-house you learn to save money, budgeting and change your behavior from credit-card junky to successful budget-controlled man with assets over the next 10-20 years rather than ending up homeless and divorced in 20 years from now. After all, if you are temporarily unemployed, you can distress and re-evaluate future job prospects. It could be that you find a better-paid job than you had previously and that fits you better.
When doing your tax return, include more tax deductions, maximize every tax deduction possible, for instance, in the States you can deduct job finding and moving expenses from your personal tax return, Check eligibility for Earned Income Tax Credit (EITC). Report discharged debt, for instance, see http://www.mybanktracker.com/bank-news/2011/01/28/4-tax-tips-unemployed/
Also look on the internet for college grants, government subsidies.
Many folks may not realize that the expenses related to looking for a new job can be deductible, even if you didn't get the job you were looking for. We're talking about things like fees paid to employment agencies, help on your resume, advertising, postage, long distance calls and even travel related to your job search. When the total of these expenses and other miscellaneous deductions exceeds 2 percent of your adjusted gross income, then you can deduct the amount over that two percent threshold.
Clean out your closet. Go through your closets and try to get rid of some of the stuff in there. You can have a yard sale with it, take it to a consignment shop, or even donate it for the tax deduction – all of which turn old stuff you don’t want to use any more into money in your pocket. Not only that, it’s often a psychological load off your mind to clean out your closets.
Do your own taxes – many benefits including really learning how to be strategic about taxes.
Homeowners should use the $1,500 tax credit for energy efficiency improvements. It expires this year, and probably won’t come back.
Also, see grab overlooked tax breaks:
Ask (by filing) a 6-months extension (delay) for filing taxes for your next personal income tax return. This gives you more chances to sit down with your tax adviser and use any possible tax deductions and tax credits to optimize your tax filing. It could save you $1,000s per year. Also, you have to pay your taxes only 6 months later, giving you more cash-flow.
This idea is also applicable for asking an extension (or delay) for filing your corporate taxes.
Ask your tax adviser how to do this and how much it may or not may cost with the IRS to ask a delay for filing your taxes.
