​​Four Tips for Reduced Taxes

Let's be honest, nobody really likes taxes, but we all have to pay them. That doesn't mean we can't try different things to help lower our taxes. There are several ways to legally pay less in taxes. Let's look at four ways to reduce your taxes below.

1. Retirement Contributions. If you contribute to a retirement account, you can lower your taxes by subtracting that amount from your taxable income. Since your taxable income is reduced, that means you will owe less in taxes.

2. Health Savings Account. Like your retirement, your health savings account can help you lower your taxes. Contributions into this account can be deducted from your taxes. In addition, you can make withdrawals tax-free when you need them.  

3. Higher Education. If you’re going into college, you can receive a tax credit from the government. When you apply the credit, it reduces the amount of taxes you will owe. It’s a nice way to help offset how much you pay in tuition.

4. Charitable Donations. If you’ve been wanting to donate any amount of money or goods to a local non-profit, do it! It all counts as a tax deduction, so that helps you and benefits your community. 

Try any of these tips to help decrease the amount you owe in taxes. If you still need help preparing your taxes or managing your finances, call AMJ today at 919-368-1877.

SOURCE

https://money.usnews.com/money/personal-finance/articles/legal-secrets-to-reducing-your-taxes