Top Ten Tips For Reducing Your Taxes - PowerPoint PPT Presentation

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Top Ten Tips For Reducing Your Taxes

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`Reducing taxes is a goal many of us aspire to, and by trying to understand our taxes better and become tax law savvy, we can often end up saving ourselves many dollars each year. Read on for the top ten tips for reducing your taxes: – PowerPoint PPT presentation

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Title: Top Ten Tips For Reducing Your Taxes


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Top Ten Tips For Reducing Your Taxes
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  • Reducing taxes is a goal many of us aspire to,
    and by trying to understand our taxes better and
    become tax law savvy, we can often end up saving
    ourselves many dollars each year. Read on for the
    top ten tips for reducing your taxes
  • 1.Retirement account contributions
  • These are a great tax reduction tool and have
    benefits that are twofold deducting the amount
    that youve paid into a retirement account, from
    your contributions, is usually permissible by law
    and can reduce your total taxable income. Not
    only that, but the funds remain tax free until
    you retire, and beginning this strategy early,
    can help contribute towards a more comfortable
    retirement.

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  • 2.Combining vacations with business trips
  • Reduce the cost of a vacation by combining it
    with a business trip, and then deducting the
    percentage of unreimbursed expenses spent on
    business, from the total costs. Be careful to not
    stretch the limits of this too far, but provided
    you are honest about the time spent on business
    related activities and the time spent enjoying a
    vacation, this could help lower your taxes.

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  • 3.Home office deduction
  • If you have a small business that operates from
    home, then you should consider the home office
    deduction when planning for your taxes. This
    enables you to take a deduction from the percent
    of your home that is used to conduct the business
    from, such as a guest bedroom which is used
    predominately as an office.

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  • 4.Deductions for the self-employed
  • If you work for yourself, either on a part or
    full-time basis, you are eligible for a whole
    host of tax deductions. Some examples of this
    include business related expenditures on such
    things as mileage, shipping, advertising, office
    supplies and website fees. You can even deduct a
    percentage from your home internet charges if
    they were used for the business. Think about your
    business carefully, and be sure to make notes of
    any expenditures related to it.

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  • 5.Social security taxes for the self-employed
  • If you are self-employed and pay 100 of your
    social security taxes, you are eligible to deduct
    50 of those taxes paid your return doesnt even
    need to be itemised to be able to claim this.
  • 6.Vehicle expenses
  • A tax deduction that is often overlooked, comes
    in the form of unreimbursed vehicle expenses.
    Youre not able to subtract from the commuting
    costs, but travelling to satellite offices or
    having your own vehicle for business for which
    you havent been reimbursed, means that you can
    deduct mileage costs.

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  • Tax credits
  • If youve been attending college, then the
    American Opportunity Tax Credit is available for
    every year that youve been studying. College
    expenses that qualify for the deduction, can get
    you tax credits of up to 100 of the first 2,000
    spent, and 25 of the next 2,000 up to a maximum
    of 2,500 per student. You will need to meet
    certain income requirements before you can apply
    for this.

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  • 8.Earned income tax credit
  • This credit can lower the final tax amount for
    working families on a low and moderate income.
  • 9.Add in reinvested dividends
  • If youre an investor, when calculating your
    costs after youve sold a financial asset, be
    sure to add in all the reinvested dividends. When
    you go on to sell the investment, the cost basis
    is increased and your capital gain is reduced.

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  • 10.Charitable deductions
  • Checks, cash, donation of goods, clothing and
    charitable deductions made with payroll deduction
    are all deductible, and when totted up together,
    can make a sizeable amount, so try not to forget
    about them when it comes to planning for your
    taxes.
  • Any tax professional worth their salt, will also
    be able to advise you of the myriad ways in which
    you can reduce your taxes, so dont be afraid to
    hire one if you really want to save yourself some
    money.

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  • At Heyer Associates, we proactively assist our
    individual and small business clients in meeting
    their goals. Our key area of focus is ensuring
    that our clients remain compliant with federal
    and state tax laws by providing them with high
    quality accounting and tax preparation service
    Coral Gables. If you are looking for tax
    preparation service in Miami, Heyer Associates
    would be a right option.
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