Mary Beth Franklin from Kiplinger published an article entitled "71 Ways to Save on Taxes" back in May 2010. We found the article interesting but also wanted you to be able to read it without falling asleep in your coffee. So we decided to talk about our favorite top three ways which we believe can help you save on taxes. Here goes:
Yep, a great way to save on taxes is to go green with home improvement projects. If you didn't make any home improvements in 2009, don't let 2010 also pass you by. You can get tax credits up to 30% when you decide to spend money on projects such as installing energy efficient doors and windows or replacing that old furnace or water heater with a more energy efficient model.
You can also benefit from investing in some alternative energy equipment such as solar electric heaters and wind turbines. So go green, save on your taxes AND save the earth. How hard can this be eh?
Reduce Your Taxable Income
Another simple way to lower your tax bill; just reduce your taxable income by putting away more in your 401(k) plan in 2010. Because the money put away in a retirement savings plan is not considered taxable income, you can lower your tax bills without doing anything else. Again, a simple small step, right?
Plan for the future
You may not be ready for retirement yet but you may be worried about taxes that you'll have to pay in the future. So plan for the future by shifting some or all of your retirement plan to a Roth 401K. Although you don't get a tax break when you put your money IN, you get a tax break when you take your money OUT during your retirement. The benefit is huge because regular 401(k) plans are taxable.
Now if you still want to read Mary Beth Franklin's 71 steps to Save on Taxes, go for it by clicking here.