Minimize Your Tax Liability

There are two certainties in life, according to the old axiom: death and taxes. While you may not be able to avoid taxes, you may be able to reduce the impact they can have on your finances. Here, we’re going to look at some of the steps you can take to reduce the amount of taxes that you have to pay without getting into any trouble.

 

Claim what expenses are available to you

 

There are a lot of business costs that are deductible, meaning you can reduce your tax liability on business profits. If you run a side hustle or a business, then you should be sure to include any investments you make into the business, whether it’s for equipment, office space, furniture, advertising, other services, or any business-related travel, including mileage spent driving for business purposes.

 

Just ensure that you account for all expenses thoroughly, too. Also, keep your business and personal spending separated by using separate bank accounts and credit cards.

 

Use tax-deferred savings accounts

 

There are different kinds of savings accounts that can work as excellent tax-reduction tools. The more that you put into them, the more taxes up can defer over time, up to a certain threshold. Your retirement account, whether it’s a 401(k) or an IRA account is one example of such an account. A Health Savings Account is another deductible savings plan.

 

Check out what other tax breaks might available to you

 

Most states and local communities have their own tax breaks that are worth taking the time to investigate. For instance, federal tax reform law might have scrapped the ability to make miscellaneous deductions, but some states still allow you to claim them. What’s more, tax breaks don’t solely apply to income taxes.

 

Of course, you can also increase your charitable donations throughout the year to help you save on taxes. It’s not as simple as “donate $5, deduct $5,” as people like to claim, but it helps.

 

What do taxes pay for?

 

Taxes pay for a lot of the public services we rely on. However, many of those public services go underfunded, while oversized portions of the budget go to things like inter-government bureaucracy and military contractors. What’s more, if you read here you can watch as DTSS uncovers deep state scam that might see the money from the states being used to pay off the bankruptcy of the US government itself. Do you homework, and vote in each local and federal election.

 

Get help from an expert

 

The above strategies can help you minimize how much you have to pay in taxes, and you should also consult with a tax accountant,. The consequences of poor accounting can see you getting audited and losing money, so get help from a professional.

 

 

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Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/