The way to lower your tax bill is to lower your taxable income. Lowering your taxable income is not the same as lowering your gross income.
The way to lower your tax bill is to lower your taxable income. Lowering your taxable income is not the same as lowering your gross income. The goal is to maximize your gross income but minimize your taxable income and to achieve that goal you will need to itemize as much as possible.
When medical and dental expenses exceed more than 10% of your adjusted gross income, they may generally be deducted. This 10% threshold applies to all individuals, including seniors over the age of 65.
The way it works is anything over the threshold may be deducted. If you earn say $60,000 then any medical expenses over $6,000 (10% of $60,000) may be deducted. So if you had $8,000 in medical costs, $2,000 could be deducted.
If your portfolio holds winning investments that you sold for a profit during the year, other losing investments may be sold to offset capital gains tax. Selling investments for tax reasons alone is generally not a wise strategy and the IRS can effectively void your tax break if you buy the position again within 30 days; this is called a wash-sale.
The limit imposed by the IRS on offsetting capital gains taxes is $1,500 for married couples filing separately or $3,000 otherwise.
Finally released to the public, trading guru Dave Aquino's guide, "The Options Trading Accelerator Method", reveals how Wall Street's big lie has stopped traders with small accounts from reaching their full potential and how his student favorite trading method could change that!
Click here to keep reading…
Mortgage interest counts as a deduction on your taxes. Most people follow a regular monthly schedule of paying off their mortgages so their annual mortgage interest deductions are the sum of interest payments made over 12 months. Generally, you are permitted to accelerate your mortgage payments without penalty. So if you are looking to minimize taxable income for the year, you could consider paying your mortgage interest for January of the following year in December of the prior year to get an extra month’s interest deduction.
Other qualifying expenses that may be predictable and which you can afford to pay off before year end will count as deductions too and lower your tax bill.
➤ Free Guide: 5 Ways To Automate Your Retirement
As an individual, you may contribute as much as $5,500 annually to a traditional IRA or $6,500 if over the age of 50. Contributions can be made all the way up to the April tax deadline and still count for the prior year.
The amount of the IRA contribution that may be deducted depends on:
If you are covered by a work retirement plan you may be prohibited from deducting IRA contributions.
Although 401(k)s are typically sponsored by employers, self-employed individuals may also contribute to a 401(k) plan up to $18,000 annually for those under 50 and up to $24,000 annually for those aged 50 and above.
Employer contribution matching to your 401(k) plan is quite common and accelerates your retirement goals.
The Federal Reserve has a disturbing plan that is getting ready to roll out as soon as May. This is a lot more than printing trillions of dollars or manipulating interest rates. It's about every checking account, every purchase and every money transfer in America — including yours and mine. 
Click here to discover how to protect your money
Good tax software is available these days to sum the deductions you take for donating cash or goods, such as food and clothes, to charity.
If you help out at the local soup kitchen, your travel expenses and mileage are deductible.
When you start a job, you will typically select how much tax you want your employer to withhold from your salary. The W-4 selections can be changed at any time and optimized as follows:
States and educational institutions operate 529 savings plans to allow parents save up to $14,000 annually for each child’s college tuition and enjoy a tax break in the process. Contributions greater than $14,000 can trigger a gift tax so consult a tax preparer if you are uncertain whether you are at risk of exceeding the threshold.
If you contribute to a 529 Plan operated by your state, you can typically deduct 529 Plan contributions on your state taxes as well as your federal taxes.
This "heartland" town 2,400 miles away from Silicon Valley will be the NEW playground for America's 1%-ers.
Learn more here.
SoFi Personal Loans Review: Borrowers with excellent credit histories can get fixed or variable rate…
Personal Capital pairs clients who enroll in its robo-advisory service with dedicated financial advisors. This…
A Historic Night at Super Bowl LIX On the grand stage of Super Bowl LIX,…
YieldStreet Review: YieldStreet was ranked among the most rapidly expanding financial services firm in the…
Brad Pitt has evolved from a handsome leading man of Hollywood blockbusters into a multifaceted…
2 Chainz Net Worth: 2 Chainz net worth is estimated at around $9 million.Read more…
This website uses cookies.