United States
Staffed with 100% US Employees

Smart Ways to Save on Your Tax Payments

March 1, 2018 by OSYB Staff

Small Business Profit Explosion shares some tips that could help decrease your annual tax payments:

  • You should maximize your 401K plan contributions of $17,500. If you are over 50, take advantage of the extra $5,500 that you can contrubute and ensure that you meet the cut-off date of December 31 of the current calendar year.
  • If you are over 50, and you have an individual retirement plan (IRA), you may contribute an extra $1,000 over the standard $5,500.  There is also a difference in the contribution dates with IRA accounts and you can deposit up to the time you file next year’s returns.
  • If you give gifts, you can save taxes by giving up to a maximum amount of $14,000 per person in the form a charitable contribution to another individual or entity. You can use this gift provision each year but the gift has to be made in the calendar year of the tax filing to be eligible.
  • Buy energy saving appliances, those listed as ENERGY STAR and that are also on the government tax credit list, can help you claim back a portion of the cost of the purchase. Keep in mind that not all appliances that are ENERGY STAR will be on the list so always check before you buy as the government list does change yearly.
  • If your employer offers any child-care reimbursement programs that allow you to pay for child care with pre-tax dollars, make sure you sign up for them.   This lowers your overall tax burden and will result in overall lower costs to you.

As always, with tax suggestions, please contact your tax professional.

See:  Tax Planning Tips For Year-Round Benefits

Image Credit:  Deposit Photos