Tips for Cutting Your Taxes
Financially successful people often pay high income
taxes. Reducing taxes can go hand in hand with making
wise life decisions.
Instructions
Study tax law each year. Read IRS
publications, particularly the 1040
instruction booklet, and articles
about new tax laws.
Have your tax return prepared by an expert every three
years or so if you normally do your taxes yourself.
If you have your taxes prepared for you, either see a
different, experienced tax preparer every few years or
make a list of questions to ask during the off-season
and while being interviewed.
Keep and organize receipts and documents for
investments, property, business and employee expenses,
mileage, donations, medical bills, and casualties and
other losses.
Buy and Put Away
Purchase a home.
Purchase rental property.
Put the maximum amount allowed into a retirement
account.
Put up to 100000 each year into a traditional IRA if you
are not covered by another retirement account at work or
if your income is below the IRS limit.
Put up to 100000 each year into a spousal IRA if your
spouse is not working or is not covered by a retirement
plan at work.
Plan Ahead
Be aware of deadlines for making retirement
contributions at work and for opening up retirement
accounts for the self-employed.
You have until April 15, the deadline for filing the past
year's tax return, to make an IRA contribution.
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