We cannot escape paying taxes.The amount of taxes subtracted from your income is dependent on how much money made, deductions, etc. We all need to strategize in order to get big savings on our taxes. Here are 7 top tax saving tips that will lower your tax bill this year.
Top 7 Tax Saving Tips just for you:
DO YOUR TAXES YOURSELF
Although this does not directly affect the amount of taxes you pay, it reduces unnecessary tax related expense. You don’t need a Certified Public Accounting (CPA) firm or tax preparation services elsewhere. There are several online software such as TurboTax which instruct you on how to do your taxes on your own.
FUND RETIREMENT PLAN
If you find yourself with extra cash, invest in a retirement fund. The more money you divert to your retirement plan makes you eligible for deduction. Seek advise before taking this step.
DEFER YOUR INCOME
Request that your year end bonus be received the following year. Since income tax is collected for the year in which income is received, you would not be taxed for the deferred income. This should only be done if it lowers your tax bracket.