Question

Part 1

Tax deductions are things that you can write off on your taxes to make your taxable income as small as possible. The smaller your taxable income income, the less you are taxed! The number one thing that you want to do when filing your taxes is to make yourself look as poor as possible to the government! In doing this, you might end up getting a tax return, instead of having to pay taxes! A good accountant comes in handy with this, but you should also be well-versed on how to calculate these things yourself. What are five tax deductions you may consider writing off on your future (or present) tax returns?

1. List the 3 items.

2. Cite your source by providing the link to the web source that you got this information from.

Part 2

Got debt? According to debt.com the average credit card holder has at least four cards. On average, each household with a credit card carries $8,398 in credit card debt. Total U.S. consumer debt is at $13.86 trillion. However, credit cards can be a useful tool when used wisely.

1. List 5 credit card tips.

2. What is an ideal credit score?

3. Cite your sources by providing the link to the web source that you got this information from.

Answer 1

PART 1

1) Exmaples of Tax deductions you might consider from your income are as below:

Deduction on investments, Deduction for Interest on Education Loan for Higher Studies, Deductions on Home Loan Interest , Deduction for donations towards Social Causes etc.,

2) Source - you can refer to section 80C under income tax act, 1961.

PART 2

1)   5 credit card tips are as below:

• making the payment of the bill on time
• Don't charge more than you can afford to pay off in a month
• Avoid getting too close to your credit limit
• Don't choose to open/maintain too many credit cards
• Avoid fees.

2) Ideal crredit score:

For a score with a range between 300-850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most credit scores fall between 600 and 750. Paying the credit card bills on time will make us maintain the perfect scores and get more scores accordingly.

3) You can google to get more related information