Smart Taxes: Ways to Reduce the Amount of Taxes Owed This Year

One thing that people stress about is money, which is understandable. Americans are recovering from harsh economic times, so it makes sense that people are still feeling the pressure. One thing that people are often concerned about is their taxes, and the following are just a few ways to reduce that stress this year.

Save More

People tend to stress out about taxes, but this tension can be reduced to something a bit more manageable by taking the right steps, like contributing more money to your retirement account. Of course, most people do not want to put more money into their retirement account because it means that your paycheck is going to be smaller, but you should definitely consider it because some of it is tax deductible. You have to make sure you are funneling this money into accounts that are eligible like an IRA or a 401(k), just to name a few examples.

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Be Generous

It would be a good idea to start looking into legitimate organizations that help others around the world. Giving your money to charity could help you during the tax season. You can just talk to your tax specialist, and he or she will let you know how this deduction may help you. There are several organizations, churches, and other 501c3 establishments ready to take your donations so that you can save more this time around.

Ask for Help

The next thing you should do is find a consultant, like a property tax consultant. This type of consultant is especially important for business owners. These professionals are trained in everything tax related and know how to use that knowledge to your benefit. For example, one of these consultants might help calculate how much income should be left in the business rather than claimed as profit. This little trick is only available for those who have a business but can really help a person during tax time. Of course, those who do not have a business can still use the help of a consultant to reduce his or her taxes, too.

Deduct Medical Expenses

Everyone gets sick from time to time, and you may be able to use this to your advantage. It might not be common knowledge, but medical supplies can be deductible. It should also be noted that certain services like acupuncture or physical therapy are also deductible. You might be surprised by what else is deductible, such as a woman’s breast pump. The point is to review all your medical expenses with a consultant or a tax expert to see what you can come up with.

These are just some ideas that may help reduce your tax stress when the time comes. Again, these tips will not solve all your tax-related stress, but at least you might get some good news when you see what you have to pay Uncle Sam this year. Yes, this is going to take time, but it is going to be worth it in the end.

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