Everyone loves to save on their taxes, especially since it seems like the government never runs out of ways to add to American’s tax bill. So let’s discuss some helpful tips to reduce your tax bill. Although it might be too late to implement these ideas for last year’s return – unless you file an amended return – you can start using them as you prepare for your 2014 taxes.
- One of the best things you can do to reduce your tax bill is to maximize your retirement accounts. By contributing the maximum to your retirement fund you can save thousands in taxes.
- Take full advantage of health care savings accounts by again contributing as much as you can to your account. It’s also a good idea to buy a plan on the Affordable Health Care Act exchange. Failing to do so could mean paying a penalty, which is really a tax.
- If you itemize your tax deductions then don’t forget to write off your state and local sales tax from your federal return.
- You can also deduct any expenses you incurred for moving if it was for a new job, as long as it was at least 50 miles away.
- When it comes to a retirement plan, make sure you choose which option is best for you: Traditional IRA or Roth IRA. If you’re not sure, we can help you figure it out.
All tax situations are unique. If you need help with your tax planning for 2014, then contact us at GROCO and we can help.