There are many ways you can pay less in federal taxes, than you currently do. Some ways require careful planning and the help of a CPA or tax attorney to structure them properly. But others are simple things you can do yourself. Here are some examples:
- Itemize ‘“ Keep good records and save all of your receipts, and see if you have more to deduct than the standard deduction. If so, you’ll get more money back on your refund, or owe less, if you owe money.
- Give to charity ‘“ Charitable donations, including money and other items, are tax- deductible and will reduce what you owe (or increase your refund). Remember that you need a receipt, if you make a donation worth over $250.
- Save for retirement ‘“ If you have the option of putting money into an employer- sponsored 401(K) plan, that money won’t be taxed until you withdraw it during retirement. The same is true for money you contribute to a traditional IRA.
- Evaluate your withholdings ‘“ Don’t let the government borrow your money interest-free, all year. If you are getting a big refund check, each April, adjust your tax withholdings so that you get to keep more of your money throughout the year.
With your taxes, it’s always better to start planning as soon as possible. If you would like advice on these and other tax issues, Levy and Associates can offer tax help. We offer full service accounting, as well as tax resolution services for those who owe the IRS. For advice on tax planning or help with IRS tax relief, contact us, today, for an appointment.