The biggest item in your family budget probably is taxes and not your home or your food bill. Finding ways to reduce your taxes means more to to your bottom line.
Here are 10 tips to reduce your tax burden as detailed by:Grow Your Money!: 101 Easy Tips to Plan, Save, and Invest
1. Maximize contributions to retirement plans. You save taxes in the current year and every year after as the money grows tax deferred.
2. Convert your traditional IRA to a Roth IRA. Taxes are more likely going to go up. You'll pay now...but save significant $$ later.
3. Own a home - it provides many tax deductions!
4. Pay attention to how much your investments are taxed. Did you know stocks owned for more than 1 year carry a lower capital gains tax.
5. Make tax wise charitable contributions. Check out charitable gift annuities.
6. Make the most of employer fringe benefits such as flexible spending accounts.
7. Own a business. There are many tax breaks for small businesses!
8. Look for tax credits! The holy grail of tax savings opportunities! They reduce your tax burden $ for $.
9. Look for deductions for non itemizers such as retirement contributions, moving expenses, medical insurance, school expenses, alimony, etc.
10. Timing is everything!
Learn more about growing your money by reading this book! Save money by borrowing it from the library!