- Posted by Amy Spagnola
- On October 6, 2017
- 0 Comments
Everyone would like to owe Uncle Sam a few less dollars and cents this year. As always, two of the best ways to see more money in your pocket are to maximize tax deductions and earn more credits. But how can you really save more this way? Some of the most popular ways to receive deductions is through mortgage interest, student loans and real estate taxes. Furthermore, you may be able to receive additional tax credits from expenses like daycare or child care, retirement contributions and certain education expenses.
Here are a few other ways to reduce your tax bill this year:
1.) Cast Away College Savings
Money spent on a savings account for school tuition (529 college savings account) will have the benefit of being tax-free. Inquire with A.F. Gebauer and Company for more information on saving tax money through college savings.
2.) Rally on Retirement Savings
Though eliminating money from a take-home paycheck but adding more to retirement contributions can hurt initially–in the long run, it offers a few benefits. Namely boosting retirement savings and lowering overall tax burden.
3.) Change for Chairty
Giving away money has a few perks–while it can feel good to donate–chartable contributions are also tax deductible and individuals can receive a gift of up to $13,000 without owing taxes.
4.) Look at Medical and Holistic Treatments
Health expenses like some alternative treatments — acupuncture or chiropractic care can be tax deductible. Other medical costs for health and wellness supplies like false teeth, breast pumps and even weight loss programs could help your tax bottom line.
5.) Create a More Energy Efficient Home
The government rewards those who install new heating and cooling systems, new windows and solar panels to help with energy efficiency. Credits can be received for a variety of energy-optimal home upgrades.
6.) Become a Boss
Starting a business can be daunting but it has its payoffs. Entreperneurs are able to have more control over how they pay taxes and can count certain business expenses in order to pay less total taxes. It’s best to consult a tax professional regarding eligible business expenses.
7.) Check on Earned Credits
Even low income earners may have earned income tax credits as high as $6,000. Check with a tax expert for more information on investigating credits.