Simple Tips for Saving on Taxes

Life is expensive. As such, if you’re like most people, you try to save money wherever and however you can, including on your taxes. Fortunately, there are many ways to do just that. After all, why should you pay Uncle Sam more than you have to?   

Add a “Green” Addition to Your Home

If you care about the environment and your wallet, why not help both by taking advantage of the government’s Renewable Energy Tax Credits, which are available until 2021. These tax credits apply to eligible energy-efficient additions to your home, including things like fuel cells, geothermal heat pumps, and more.

How much of a credit you receive depends on when you have your system installed. For the maximum 30% credit, you’ll need to have your addition up and running before December 31^st

of 2019.

Just make sure, before you install anything, you check to ensure it’s eligible for the tax credit. Otherwise, you could end up making an investment and getting nothing back in return!

Opt for a 401(k)

Another nice option for saving money is to open up a 401(k). Not only will this plan enable you to save money for retirement, but you can deduct that money from your income, thereby lowering the amount of taxes you owe

The IRS does have some limits on how much you can contribute, tax-free, to your 401(k), but it’s a pretty high limit by most standards. If you’re under fifty, you can contribute $18,500 per tax year. And, once you reach 50, that amount goes up to a whopping $24,500.

These are just a couple of options for saving big come tax-time. To learn about more ways to save and to lower your tax bill exponentially, obtain the services of a qualified financial adviser. It’s one of the smartest investments you can make.