Simple Strategies for Lowering Your Taxes

Taxes are a necessary and inescapable part of life. Just because you HAVE to pay them, however, doesn’t necessarily mean that you have to pay through the nose. In fact,  it’s always smart to try and find ways to save money on your taxes, and fortunately, finding these money-saving options really isn’t all that hard, at least not if you know and follow some simple tips and strategies.

Take Advantage of the Earned Income Tax Credit

One option you have, depending on how much income you bring home, is to take advantage of the earned income tax credit (EITC), if you’re eligible. This tax allows those who qualify, typically lower-income individuals, to pay less in taxes and to enjoy a nice little tax credit that can sometimes be worth thousands of dollars.  Research this credit to see if you qualify, and, if so, take advantage of it right away!

Consider Buying a Home

If you’ve been thinking about taking the plunge and buying a house, go ahead and go for it! You’ll likely end up paying less in taxes than you would by renting. The reason for that is that you can  

deduct both mortgage interest and property taxes, which can lead to some big savings come tax time.

Make Some Contributions

Finally, consider making contributions to either a health savings account (HSA) or a flexible savings account (FSA). Any contributions you make won’t be taxed, which means lower tax bills and a nice, constantly growing savings that you can use as needed.

As you can see, there are many ways to pay less on your taxes each year. Research these and other options to see what your best choices are, and also talk with your accountant about the best ways to lower your tax bill. With a little effort, you can cut your tax costs in half (or more!), so it’s definitely worth the time and effort.