Five Tips to help You Save On Your 2014 Income Tax Bill

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Although there are still more than two months to go before we turn the page on the year 2014, the end of the tax year is still fast approaching. While it’s true that April 15 may seem like a long ways off, the fact is you only have those precious two months left to still do some tax saving on this year’s bill.

 So whether you’re an early filer or you prefer to procrastinate until the deadline, now is the time to really start thinking about your 2014 taxes. To that end, here are a few suggestions to help you get prepared. First, contribute a little more to your retirement plan. By adding a few extra dollars to your retirement savings, you not only increase your overall amount, but you also decrease your taxable income at the same time.

 Another helpful tip is to reposition your portfolio, which can help reduce your tax bill. You can do this by selling your poor performing stocks, which can offset the gains you make from your better performing stocks. Another way to reduce your tax bill is by giving more. Instead of giving more money to the IRS, reduce your taxable income by donating more to charity. It’s a win-win as you help those in need, and yourself, at the same time.

Meantime, make sure you don’t overlook possible tax credits, including the earned income credit, the child and dependent care credit, and the residential energy credit. Lastly, consider setting up a health savings account. These are great for helping you cover medical expenses now and for saving up money for the future.

Of course, you can also contact the professionals at GROCO for more tax savings ideas. Just call 1-877-CPA-2006 or click here to contact us online.

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