Pay Less In Taxes With These 4 Strategies
Pay Less In Taxes
The only sure things in life are death and taxes. For the immortality issue, we have little to do about it. However, with the bothersome bills from Uncle Sam each April, we have tried to find ways to go around it. And hey, we are not talking about tax evasion here. Which is better; throwing some bones to the government or spending the beautiful Sunday afternoons behind bars. Well, you and I know better.
There are many ways to ensure your hard-earned dollars do not quickly leave your pocket.
1. Consolidate deductions where possible
Consider making extra mortgage payments before the end of the year. You will be entitled to claim interest for that tax year. You can also prepay all the normally prepaid deduction expenses in December. Sometimes it may not work if during the year the standard deductions are increased. However, itemized deductions may help reduce the many tax deductions at the end of the year.
2. Contribute more to retirement funds
A perennial way to reduce a tax bill is by increasing your contributions to the retirement funds. We recommend that you contribute at least 10% of your salaries to your 401(K). Additionally, you can contribute the maximum amount of $5,500 to your existing IRAs.
3. Reduce Your Taxable Income
If you are not getting any income, you are surely never going to pay any income tax. But you must work and earn. So what do you do? The easiest way to bring down your taxable income is to contribute to a tax-deferred retirement savings vehicle. Which leads us to last suggestion…
4. Adjust Your Withholding’s.
We would advise that you keep your withholding’s as low as possible to enable you to save more of your income. Our experts at MWB Tax Solutions will help you remove the tax liens faster than any company. Contact us now to requests a quote and ask about our affordable and competitive rates.