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Tax Strategies

How To Save Taxes- 5 Best Strategies To Protect Your Income From Taxes

What’s that one thing you dread but can’t stop- tax bills? What comes to mind each year when you get your IRS tax notice? What if you discovered how to save taxes? Imagine how that would impact your income and financial goal.

Let’s face it-nothing gives you a better “well done” pat on the back than your hard-earned money. At some point in our lives, we all dream of living in a tax-free world. But it’s just impossible. 

As a taxpayer, you need to research all the tax-saving options you can get to choose what’s best for you. But it’s one thing to dream about earning a tax-free income, and it’s another thing to find the right tax strategy that can help you achieve this goal. Discovering how to save taxes  is like discovering a goldmine.

Ready to discover how to save taxes? Here are the five best ways to save tax money!

  • Claim Tax Credits: 

Several IRS tax credits can help you reduce your taxes. For example,  tax credits such as the Earned Income Tax Credit reduce taxes for low-to-moderate-income taxpayers. The IRS will typically notify you if you qualify for the EITC. In addition, The Lifetime Learning Credit reduces your taxes and educational costs, while the American Opportunity Tax Credit offers a tax credit for first-time college students for their first four years of higher education. The Child and Dependent Care Credit can also give you up to a 50% refund or tax break for childcare-related expenses in 2021.

Here are more tax credits you can enjoy as a taxpayer

  • Saver’s Credit
  • Medical And Dental Expenses 
  • Adoption Tax Credit
  • Residential Energy Credit
  • IRA Contribution Deduction

These are just a few of many available tax credits that can cut down your taxes and help you discover how to save taxes.

  • Contribute To A Health Savings Account

A Health Savings account is a medical savings account that helps taxpayers with a high deductible health plan save for future healthcare expenses. This account offers a triple tax 

advantage and is a massive driving force in creating a tax-free income. First, it allows you to make a tax-free withdrawal from your account when you use it for medical expenses such as copays and coinsurance. And when you don’t use up your HSA balance by the end of the year, it rolls over yearly.

It even gets better if your company offers HSA benefits to its employees. With this, you can also check if your company sponsors a particular HSA plan and how much it contributes to the plan. But if your company doesn’t offer it, you might need to open your own HSA individually. 

The limit of pre-tax funds you can contribute to an HSA for 2022 is $3,650 for a single person and $7,300 for a family, as well as an extra %1,000 if you are 55years old and above.

  • Start A Business

If you want to learn how to save taxes, then start a business. Creating a side business or an additional source of income offers numerous tax benefits, especially with essential tax deductions for small business owners, such as health insurance premiums.

Another catch here is that if you adhere strictly to the IRS guideline, you could also reduce your taxes by deducting part of your home expenses with the home office deduction. This means you could deduct the portion of internet and utilities used by your business from your income to claim deductions. 

But to enjoy tax deductions for small businesses, you also have to conduct a business that makes a profit. If you’ve made a profit in three out of five years, the IRS regards your business as profitable.

Tax planing

  • Hire A Tax Strategist

A lot of people may overlook this, but strategic taxpayers won’t. Hiring a tax strategy shows you how to save taxes in the best ways. Hiring an expert tax strategist the most critical factor in saving your taxes and creating a tax strategy that works for you. One of the most important strategic choices you can ever make is finding a tax strategist that can substantially cut down your tax bill, and only strategic taxpayers know this. When you truly understand the value of tax strategies, you end up saving thousands of dollars from your taxes. Tax strategists perform beyond the traditional scope of helping you sort out your tax issues.

Having a tax strategist means creating a long-term vision for your financial and business future. If you are dealing with complex tax situations or need more advanced tax strategies as part o your financial plan, only a tax strategist fits into the description.

At Tax Goddess, our role as a Tax strategists has put us in the best position to offer the best services to our clients, irrespective of their tax needs. So whether it’s for strategic tax planning or tax preparation, Tax Goddess is the right helping hand you need.

  • Join Us This October For Our Tax Reduction Webinar

Still looking for how to save taxes? If you are struggling with saving a big chunk of your hard-earned money in taxes, then attending our tax-saving webinar is just what you need to cut down your tax bill. Our webinar will help you get the best out of your tax reduction plan and show you how to implement valuable opportunities that can minimize your total tax liability and help your business thrive. 

With just 3 top secret IRS-compliant strategies, this webinar will show you step-by-step how to cut down your tax bill by 40%.

In addition to helping you save tax money, this webinar will help you get the most from their tax deductions and plan for your financial future. 

If you’d like to participate in this priceless webinar and set yourself up for financial success seamlessly, you have to register fast before your seat is taken!

Click here to Pre-book a slot and be the first to get the webinar bonus!

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