Pay Less in Taxes

When you sit down to do your taxes, it can sometimes feel like you’re staring down at forms written in a foreign language. And, while taxes and tax law can be a bit complex, making the most out of them isn’t quite as hard as you might think.

The simplest way to have your taxes work in your favor is to know what deductions and credits are available and then to take every single one that you can. The more deductions and credits you have, the more money you’ll save, plain and simple.

Thinking along those lines, we’ve provided some useful tips that can help you to actually pay less in taxes this year and maybe even get something back!

Tip #1: Reduce Your Taxes with Retirement Account Contributions

One of the simplest and most beneficial ways to reduce your taxes is through contributions to your retirement account. With almost all of your retirement accounts, other than the Roth IRA, you’ll be able to deduct any amount you put into your fund from your taxes, giving you a lower taxable income, and thus, lower taxes. As an added bonus, the money you put into these accounts will only grow until you retire, and you won’t have to pay taxes on it as it does.

Tip #2: Mix Business and Pleasure

First of well, we want to make it very clear that we’re not talking about being dishonest when we advise you to mix business with pleasure. We’re not saying take a trip to the Bahamas and write it off as a “business expense;” that’s pretty much a surefire way to get audited. However, if you do want to take a business trip and add some fun into the mix, there’s nothing wrong with that! You’ll be able to deduct some things, like your travel, as a business expense, and that will help to legally make your trip cheaper overall.

Tip #3: Take Advantage of Being Self-Employed

This final tip is just for those who are self-employed, either full-time or part-time. If that’s you, know that there are a TON of deductions for the self-employed, and you need to take advantage of as many of them as you can. There are deductions for your gas when you travel for business, for advertising costs, for your website fee, for your membership to professional organizations, and so much more. If you’re not self-employed, those awesome deductions are probably enough to make you consider it, huh?

As you can see, there are lots of ways to cut corners and save money on your taxes without breaking the law.

The trick is really just to know what money-saving opportunities are available to you and then to take them! If you’re not sure how best to maximize your money, then working with a financial advisor can make a world of difference for you.

Related articles

• End of Year Tax Tips from Our Experts (turbotax.intuit.com)