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Our earnings help us to make savings. And if we cannot save we land up paying huge amounts in paying tax. Some of you might pay tax just for the sake of paying it. There are several ways for you to lessen the tax burden …. check out these points before filing your returns :
- Never forget to consider insurance as a deduction on your federal tax returns.
- Always deduct your long- term care insurance and health insurance on your federal tax return.
- Check out if you are eligible to get a reduction on your income.
- Plan your medical expenses to incur maximum deduction out of it.
- Maintain your business receipts.
- Do not neglecting deductions from any angle.
- Use all the tax credits applicable.
- Accept losses if required.Sometimes such things might help you to make a better profit in the long run.
- Take up some risky measures.
- Make some charitable donations.
- If you want, you may start gifting.
- You may utilize your child, if he/she is above 14 years old…on the payroll.
- Try to maximize your retirement plan contributions.
- Check up your file repeatedly before you submit.One single thing if overlooked …this may lead you to bear greater losses in your tax submission.
Horaayy..there are 5 comment(s) for me so far ;)
Although we all know that the amount we pay as taxes is used by the government for the overall development of the country, a time comes when we all become wary to part with our hard earned money, and we try to evade tax. And reliable sources such as this blog providing such useful tips to reduce the tax burden is what we all look for. Will surely try to follow these rules.
Thanks a lot for such an informative article…. its really helpful …
The point you have mentioned is very logical and puts inflation in the right perspective. Really liked it.
Sil, kudos to you, you have suggested quite innovative ways to save taxes. Truly, if you fail to locate the channels to save taxes you end-up paying huge amounts to Uncle Sam.
Thanks for the tips. I shall keep that in mind during next tax planing.
I’m a financial planner and CPA and I wanted to share with you one of the most common mistakes I see related to taxes and insurance.
If you are a business owner make sure that your health insurance and long term care premiums are deducted on page 1 of your tax return and not put with your medical expenses on Schedule A of your itemized deduction section.
Schedule A Medical expenses are subject to an income floor. Meaning that they must pass a certain level before any of these expenses can be deducted.
Additionally itemized deductions can be phased out and you will not even get credit for a portion of the expenses if you make to much money.
The IRS gives business owners a break by allowing them to take the full deduction (subject to no limits) on page 1 of the return. The IRS is trying to say hey we know you are paying alot for your health insurance because you are self-employed so here is your break.
My tax section at is currently under construction but will be coming soon.
Please post any additional questions on any tax topic or email me and I will be happy to answer your questions to the best of my ability. Good luck with your tax planning and I enjoyed the previous posts.