Tax Deductions

3 Strategies To Reduce Your Taxes This Year!

It’s never too early to begin giving some thought to your taxes for next year. Get tax help now with these tax reduction strategies.

Donate to Charity.

If you’re cleaning out your closets, have an opportunity to give away canned and dried goods to a worthy cause, or can offer up a small financial contribution to a worthwhile charity, be sure to capture the information for tax purposes. Track the name of the organization, their address, the date of the donation and the amount of money or type of items you donated.

Add to Your 401(k) at Work.

If you have an employer-sponsored retirement plan that allows you to take contributions before taxes, save as much as you can now, especially if your employer offers a matching amount. When you put money into your 401(k), you lower your taxable income for the year and increase your retirement monies. Even an additional 1% can make a difference and won’t hurt your pocketbook.

Itemize Deductions.

While many people still take the standard deduction each year, consider itemizing deductions. Deductions worth itemizing include a home mortgage, medical expenses, job hunting expenses, charitable contributions, home office, and education expenses.

Don’t be Afraid of Knowledge. Make serious, ongoing attempts to become more knowledgeable about your taxes, at least those that most directly affect your personal financial situation. Don’t just accept what a tax expert tells you at face value. Ask questions.