3 Tax Tips for LGBTQ Americans: Ensuring You Pay Only Your Fair Share
3 Tax Tips for LGBTQ Americans
In a perfect world, tax season wouldn't be stressful at all -- state and federal governments would tell us what we owe (or how much we overpaid) directly, and issue a tax refund or a bill, depending on your status. Unfortunately, that's not the world we have, and so everyone you know gets to worry about calculating their income and expenses and showing their work every spring.
1. Find a good tax professional
- Having the right people in your corner can save money and ensure successful financial management. Ask for recommendations from trusted sources within your community.
- Consider hiring an accountant familiar with state tax laws to optimize tax planning and reduce future tax bills.
- Utilize technology for efficient communication and document sharing with your tax professional.
2. Consider itemizing if it makes sense
- Members of the queer community may benefit from itemizing deductions, especially with high medical expenses.
- Determine whether to itemize by comparing your potential deductions against the standard deduction.
3. Explore all available tax deductions and credits
- Engage with tax software programs or professionals to identify valuable tax breaks.
- Optimize tax savings with deductions such as the nonrefundable adoption credit and the Child Tax Credit.
- Qualify for the Earned Income Tax Credit (EITC) to alleviate financial burdens.
By following these tax tips specifically tailored for the LGBTQ community, individuals can navigate tax season with confidence and maximize their financial resources for the future.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.