You can’t avoid taxes. Well, unless you fancy a walk on the sketchy side of the tracks, that is. For us law abiding citizens, taxes are kinda' like pooping - it stinks, but it’s just part of life. 💩
The good news is that there are (legal) ways you can reduce the amount of taxes you have to pay. Obviously, the less you pay in taxes the more you take home yourself, and that makes both you and your Paycheck happier! 🎉
Here are Five Fast Facts about reducing your taxes:
- 🌧️ Rainy Day Ringers - There are several great ways to save for the future, and at the same time reduce the amount of taxes you owe today. Putting money into retirement accounts, college savings accounts, and health savings accounts all reduce your taxable income now while setting you up for success down the road. Not today, Tax Man!
- 🏙️ Business Behaviors - Business expenses are a great way to reduce your tax burden. Claiming investments that lost money, selling off losing stocks, buying municipal bonds, or even just starting a business can all help you show lower income. We’re not saying you should try to lose money on your business…just that if it happens, this is a nice silver lining that can lessen the sting.
- 🎓 Educational Efforts - There are also tax benefits for repaying student loan interest, showing job-related educational expenses, and even some tuition costs. And you’re smarter at the end of it, too!
- ⛪ Charitable Choices - Giving to charitable organizations, churches, and nonprofits is a great way to reduce your tax burden. Not only does this make the world a better place (and let you support causes you feel strongly about), but it also means you pay the government less overall. #winwin
- 💸 Higher And Higher - You can also find tax credits or deductions for health expenses or for being green. This can depend on what you do and where you live, but high medical bills and high efficiency homes can sometimes save you big bucks on your tax bill. We don’t recommend all forms of…highness…just the ones that can make you pay less in taxes! 😉
🔥Bottom line: And don’t forget - kids, side hustles, and various state or local programs can often provide extra juice for the squeeze, too, so go find them.
While you can’t avoid taxes altogether without becoming a criminal, you sure can do a lot to pay less each year. Whether you’re doing your own taxes or having a tax pro do them for you, make sure you’re taking advantage of every legal method for keeping that Paycheck in your pocket rather than Uncle Sam’s!
What’s the best tax advice you’ve ever heard?
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