Four Deductions You Can Use to Reduce Your Taxes
The easiest way to reduce the amount of your taxable income is to contribute the maximum to your 401(k) or there tax deferred savings plan. This process is simple to do, just visit you Human Resources Department to obtain the proper forms. From there, money will be withdrawn from each paycheck and deposited in an account under your name, which will be invested in the instrument of your choice.
2. Use a Flex Spending account for your medical expenses
A flex spending account is a fund that you can use to pay your planned medical expenses. And the best part, the money is tax-free. That is right, simply fill out the forms at your HR department and money will be withdrawn from your check before the taxes are taken out. Where else can you pay for your doctor's services using tax free money? Please be sure to read all the details of your plan, as plans can vary.
3. Use a business entity to deduct "business related expenses"
If you are in business, make sure to form an "official" company using the structure that makes the most sense for your situation. As a business owner, you will be able to deduct certain expenses from your taxable business income. Examples of things you can deduct: Your office space in your home (% of rent), vehicle usage and depreciation, computers, printers, meals, etc. If you are in the right type of business, you may be able to deduct nearly every expense through your business. Please check with your accountant for clarification.
4. Buy a Home
Are you a renter? If so, you are paying a lot more taxes than you would if you had purchased a home. Interest on a Mortgage Loan is tax deductible. The bottom line is buy… don't rent. Buying is also a good way to build equity… that is you are treating your home as a piggy bank, because a portion of your mortgage payment goes to equity in your house. Renting is like throwing money out the window.
Related Tags: income tax, deductions, tax credit, 401k
Learn How to Save Money On Your Taxes by signing up for my Free 7-Day Email Course on Tax Savings and Debt Relief. Also learn how your 401(K) Plan can save you money on your taxes.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Guide To Finding The Right Irs Debt Help Solution For Your Situation
Finding the right IRS debt help for your situation is crucial. Where you turn for assistance will de - The Basic Function Of Accounting
Accounting is a profession as old as the hills. It was a well known practice in the Roman, Ancient E - The Fundamental Concepts Of Accounting
The Federal Election was held in Australia on 21st of August 2010. During the rather boring election - Higher Earners Warned Over Tax Relief
Those that fall into the higher earners bracket have been warned that the government may impose furt - Procter & Gamble Wins R&d Credit Case Against The Irs
On June 25, 2010, the U.S. District Court in Procter & Gamble Co. and Subsidiaries (P&G) v. United S - 3 Ways To Settle Irs Tax Debt For Less
You can settle IRS tax debt for less if you know your options. There are several ways that you can s - Five Steps To Finding The Best Tax Lead Company For Your Business
The lead buying business has become an efficient and proven form of outsourcing marketing efforts to - Truly Effective International Tax Advice
A big concern for the public and corporate business units is to deal with the international tax at t - How To Avoid Making The Common Tax And Bookkeeping Mistakes?
Even though who consider themselves in the financial loop may fall prey to some of the most common t - How To Appeal Your Property Tax Bill
The responsible homeowner will want to do a thorough check of their property tax bill to ensure they
Most viewed articles in this category:
- New Tax Rules for the Poor
New tax rules for 2007 will bring about a good year for the poorest of tax-filers in Maryland. Tax-f - The Best LEGAL Tax Shelter in the World-- Your Home-Based Business!
Welcome to the best legal tax shelter in the world-- you home-based business! As long as you keep go - IRS Alert: Tax Payers Need to be on the Look out for Fraud
Tax-Definition.org (http://www.tax-definition.org) is reporting on the second part of the tax - Income Tax Questions Answered Because of Radio - The World Is a Client of "Better Business"
Having hosted a financial radio program over several years has exposed me to many questions. Some of - IRS Is Focusing on Schedule C Filers
In the last few tax years IRS has been paying more attention to taxpayers who file a schedule C. The - 2007 Brings Tax Relief for N.Y. Residents
As of January 1, 2007, New York residents have been benefiting from a decrease in hospital bills, an - Figuring Out Your Tax Return Filing Status
When you are ready to plop down and start preparing that tax return, one of the first questions is y - Lost Last Year's Tax Return?
It happens every year. Just when you get motivated to get rolling on your taxes, you realize you can - Deductions Missed In Taxes
The deductions which are often missed by tax payers are as follows: Old points on refinancing: The - Estate Taxes
Federal estate tax applies to the transfer of property at death. The estate of a person who died is