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Want to know how to pay less in taxes?
Tax time can be incredibly expensive, overwhelming, and time-consuming, right? There are not many people on this earth that wouldn't want to pay less for their taxes and use that saved money on a vacation for their families!
But how do you go about paying less in taxes?
Well, if you keep reading, you'll learn the 5 proven, helpful tips and tricks to paying less on your taxes this year.
Retirement accounts are one of the most popular tax-reduction tools. And they serve two main purposes.
Anything paid into a 401(k) and IRA account are deducted from your taxable income. This, in turn, lowers your federal tax.
These funds continue to grow 100% tax-free for you until you decided to retire, which is another amazing benefit.
If you can combine a vacation with a business trip, you can deduct the expenses spent on anything business-related. This can include flights, a percentage of your hotel bill, and meals and drinks during meetings.
It's important to talk to a tax professional to calculate these expenses properly.
For more information on how to choose a tax advisor, click here: https://wealthability.com/blog/how-to-choose-a-tax-advisor/
If you work from home, you can apply for a home office deduction. Although, there are a few boxes you need to tick first.
For example, you need to be using the office regularly and only for business purposes. Therefore, if you are using a spare bedroom exclusively as a home office, you can deduct rent and utility fees based.
Making charitable donations with payroll deductions, checks, cash is all tax-deductible. Over the tax year, these deductions can make a huge difference, but they are often overlooked.
Also, the Coronavirus Aid, Relief, Economic Security Act, and CARES Act allow you to deduct cash donations of up to $300 without having to itemize.
Filing your own taxes is safe if your tax situation is pretty simple, and can save you a lot of money in fees. However, if you have a more complex tax situation, a professional tax advisor can find tax savings you might otherwise miss.
A tax advisor is always up to date with the changing tax laws and will ensure that no mistakes are made, no laws are broken, and will seek to lower your tax bill as much as is legally possible.
We hope this article has given you a clearer idea of the tax tips and tricks that can help you when saving money on taxes.
We understand that tax time can be incredibly scary, overwhelming, and expensive. So we hope these simple tips have shown you how to pay less income tax.
Did you find the answers you were looking for about how to pay less in taxes? If so, check out some of the other articles on this topic and types of taxes on our website.
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