9 Simple Steps to Pay Less Taxes
While it’s not likely you can entirely avoid paying taxes, there are ways to use the tax code to your advantage that may lower your tax liability.
You can reduce your gross income (which is your income before taxes are taken out) by making contributions to a 401(k) retirement plan, a 403(b) retirement plan, a 457 plan, or an IRA.
Adding up Your Health Care Costs
Health care expenses are typically only deductible once they exceed 7.5% of your AGI (and only for those who itemize their deductions).
Adding to Your HSA
HSA contributions are made with pre-tax dollars, so any money you put into an HSA is income the IRS will not be able to tax.
Selling Off Poorly Performing Investments
You can use these losses to offset capital gains, which are profits earned from selling an investment for more than you purchased it for.
The key to saving on taxes is to get to know the tax code and make sure you’re taking advantage of all the deductions and credits you’re entitled to.
Swipe up to learn more