Top Ten Tips For Reducing Your Taxes - PowerPoint PPT Presentation
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Top Ten Tips For Reducing Your Taxes
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`Reducing taxes is a goal many of us aspire to, and by trying to understand our taxes better and become tax law savvy, we can often end up saving ourselves many dollars each year. Read on for the top ten tips for reducing your taxes: – PowerPoint PPT presentation
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Title: Top Ten Tips For Reducing Your Taxes
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Top Ten Tips For Reducing Your Taxes
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- Reducing taxes is a goal many of us aspire to,
and by trying to understand our taxes better and
become tax law savvy, we can often end up saving
ourselves many dollars each year. Read on for the
top ten tips for reducing your taxes - 1.Retirement account contributions
- These are a great tax reduction tool and have
benefits that are twofold deducting the amount
that youve paid into a retirement account, from
your contributions, is usually permissible by law
and can reduce your total taxable income. Not
only that, but the funds remain tax free until
you retire, and beginning this strategy early,
can help contribute towards a more comfortable
retirement.
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- 2.Combining vacations with business trips
- Reduce the cost of a vacation by combining it
with a business trip, and then deducting the
percentage of unreimbursed expenses spent on
business, from the total costs. Be careful to not
stretch the limits of this too far, but provided
you are honest about the time spent on business
related activities and the time spent enjoying a
vacation, this could help lower your taxes.
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- 3.Home office deduction
- If you have a small business that operates from
home, then you should consider the home office
deduction when planning for your taxes. This
enables you to take a deduction from the percent
of your home that is used to conduct the business
from, such as a guest bedroom which is used
predominately as an office.
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- 4.Deductions for the self-employed
- If you work for yourself, either on a part or
full-time basis, you are eligible for a whole
host of tax deductions. Some examples of this
include business related expenditures on such
things as mileage, shipping, advertising, office
supplies and website fees. You can even deduct a
percentage from your home internet charges if
they were used for the business. Think about your
business carefully, and be sure to make notes of
any expenditures related to it.
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- 5.Social security taxes for the self-employed
- If you are self-employed and pay 100 of your
social security taxes, you are eligible to deduct
50 of those taxes paid your return doesnt even
need to be itemised to be able to claim this. - 6.Vehicle expenses
- A tax deduction that is often overlooked, comes
in the form of unreimbursed vehicle expenses.
Youre not able to subtract from the commuting
costs, but travelling to satellite offices or
having your own vehicle for business for which
you havent been reimbursed, means that you can
deduct mileage costs.
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- Tax credits
- If youve been attending college, then the
American Opportunity Tax Credit is available for
every year that youve been studying. College
expenses that qualify for the deduction, can get
you tax credits of up to 100 of the first 2,000
spent, and 25 of the next 2,000 up to a maximum
of 2,500 per student. You will need to meet
certain income requirements before you can apply
for this.
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- 8.Earned income tax credit
- This credit can lower the final tax amount for
working families on a low and moderate income. - 9.Add in reinvested dividends
- If youre an investor, when calculating your
costs after youve sold a financial asset, be
sure to add in all the reinvested dividends. When
you go on to sell the investment, the cost basis
is increased and your capital gain is reduced.
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- 10.Charitable deductions
- Checks, cash, donation of goods, clothing and
charitable deductions made with payroll deduction
are all deductible, and when totted up together,
can make a sizeable amount, so try not to forget
about them when it comes to planning for your
taxes. - Any tax professional worth their salt, will also
be able to advise you of the myriad ways in which
you can reduce your taxes, so dont be afraid to
hire one if you really want to save yourself some
money.
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- At Heyer Associates, we proactively assist our
individual and small business clients in meeting
their goals. Our key area of focus is ensuring
that our clients remain compliant with federal
and state tax laws by providing them with high
quality accounting and tax preparation service
Coral Gables. If you are looking for tax
preparation service in Miami, Heyer Associates
would be a right option.
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