Prepare for Tax Filing Season
5 ways to take full advantage of the tax laws and save you money on April 15th.
Take Advantage of Tax Advantages
There isn’t much you can do to avoid taxes altogether. But you can take advantage of a number of strategies to pay less tax. Tax-deferred and tax-free investments, year-end tax planning, and taking full advantage of the tax laws and save you money on April 15th.
|Tax-Free||Tax-Free means that no tax is due.|
|Tax-Deferred||Tax-Deferred means you don’t owe tax on your earnings now, usually because you don’t have the use of the money.|
|Selling Securities||You can avoid taxes on some or all of your capital gains by selling securities on which you are losing money, especially if you think they’re not worth holding on to.|
|Home Equity Loans||Since interest on many home equity loans is deductible, while interest on consumer loans and credit cards is not, it may pay to use your home equity credit if you need to borrow money.|
|Paying Expenses with Pre-Tax Dollars||Many employers offer flexible spending plans that let you exclude a fixed dollar amount from your salary to pay certain medical and dependent care expenses. Since the money is not included in your salary for tax purposes, you pay less tax.|
|Giving to Charity||If you itemize on your tax return, you can deduct charitable contributions, both cash and non-cash.|
Check out the 10 Most Overlooked Tax Deductions.
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Source: Greenpath Financial Wellness