Throughout the years, the experts at Balanced Taxes have noticed a pattern in tax saving strategies. Some strategies come and go with minimal success, but the strategies that really work are consistent and long lasting. If you’re looking for strategies to save some money on your personal taxes, we’re always here to help. Below are some of the strategies that our clients have used to save money on their personal taxes.
Fund Your 401(K)
One of your best options for saving on personal taxes is to start funding your 401(K). The easiest and fasted way to save money here is to max out your 401(K). However, we understand why that’s not always an option. The good news is that while it will help you, you don’t have to max out your 401(K) to start seeing results. Any amount that you put into the fund will help you start saving money on your personal taxes. Young people tend to forget about this strategy, but if you start saving early, you’ll see results quickly.
Strategize Your Inheritance Plan
We’ve talked about personal taxes and inheritance plans before, but did you know that you can save some tax money on your estate planning? If you’ve started planning your estate, you should take some time to meet with tax experts. By giving strategically, maximizing your gift vs. inheritance ratio, and involving your spouse, you can save your beneficiaries from having to pay a lot of taxes on their inheritance. You’ll get the most value out of your property by helping your beneficiaries enjoy their inheritance.
Give to Charity
If you itemize your deductions, you can give money to charity and reduce your costs when tax season arrives. Once again, your best option is to work with an expert on personal taxes. An experienced accountant can work with you to strategize your charitable giving throughout the year so that you can minimize your tax burden. Even better, your giving can help some wonderful causes, so in this case, everybody wins.
Consider Your Business Type
If you run your own business, consider what type of business you run. Do you have a sole proprietorship, a partnership, LLC, or S corporation? When it comes to your personal taxes, the distinction matters. Some business types are more heavily taxed than others. If you have an LLC, for example, converting to an S corporation can save some money on personal taxes.
Personal taxes can become overwhelming, and plenty of people miss opportunities to save money. At Balanced Taxes, we want to help you save money and get the most out of your tax return. Are you ready to start saving? Contact Balanced Taxes today.