8 tax tips to save you money
8 Tax Tips to Help You Save MoneyHere are some specific tips and actionable ideas that could pay big dividends!
Maximize Contributions to Your Retirement Account
This is one of the best ways to save taxes. Contribute the maximum amount allowable to retirement accounts and deduct the amount of the contributions. This will lower your taxable income, thus lowering your tax bill!
Determine the Retirement plan that better for you: Traditional vs. Roth
Check with your financial advisor to determine whether you should save your taxes immediately with traditional IRA or later with a Roth IRA. Roth contributions are not tax deductible, but you will not have to pay tax when you make withdrawals after you reach retirement age.
Maximize Your Health Savings Accounts
A qualified person under age 54 and in a high-deductible health plan could contribute $3,350 into an Individual HSA or $6,650 into their family-plan HSA. If you're 55 or older, you can contribute an additional $1,000 on top of those limits.
File Jointly as a Same-Sex Married Couple
If you were legally married during tax years after 2010. You can file an amended tax return as a married couple. This could potentially allow you to claim bigger deductions, which would result in greater tax savings.
Claim a Home Office Deduction
Qualified freelancers, contractors and business owners can now claim a flat home office deduction of $5 per square foot, up to a maximum of 300 square feet.
Write-Off Your State and Local Sales Tax
Do you itemize your taxes? If so, you have the choice between writing off your state and local income taxes or the sum total of the state and local sales taxes that you paid.Talk to your tax professional to decide which of these two options will give you a larger deduction.
Deduct the Cost of Re-locating for Your New Job
If you're like many Americans, you might have needed to move more than 50 miles from your previous home in order to accept this new position -- and that means the cost of moving may be tax-deductible.
Buy Health Insurance
If you dont have a Health Insurance, purchase it now to avoid tax penalty. For tax year 2015, the penalty amounts to 2 percent of your household income, or $325 per adult and $162.50 per child, up to a $975 family maximum -- whichever is higher.
To Learn MoreVisit www.taxassistancegroup.orgOr Call(855) 549-7829
Works Consulted: Pant, Paula. 8 Ways to Save on Taxes in 2014. HuffPost MONEY. TheHuffingtonPost.com, Inc. 25 February, 2014. Web. 3 November, 2015.