Top Ten Tips For Reducing Your Taxes

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Top Ten Tips For Reducing Your Taxes
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• Reducing taxes is a goal many of us aspire to,
  and by trying to understand our taxes better and
  become tax law savvy, we can often end up saving
  ourselves many dollars each year. Read on for the
  top ten tips for reducing your taxes
• 1.Retirement account contributions
• These are a great tax reduction tool and have
  benefits that are twofold deducting the amount
  that youve paid into a retirement account, from
  your contributions, is usually permissible by law
  and can reduce your total taxable income. Not
  only that, but the funds remain tax free until
  you retire, and beginning this strategy early,
  can help contribute towards a more comfortable
  retirement.

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• 2.Combining vacations with business trips
• Reduce the cost of a vacation by combining it
  with a business trip, and then deducting the
  percentage of unreimbursed expenses spent on
  business, from the total costs. Be careful to not
  stretch the limits of this too far, but provided
  you are honest about the time spent on business
  related activities and the time spent enjoying a
  vacation, this could help lower your taxes.

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• 3.Home office deduction
• If you have a small business that operates from
  home, then you should consider the home office
  deduction when planning for your taxes. This
  enables you to take a deduction from the percent
  of your home that is used to conduct the business
  from, such as a guest bedroom which is used
  predominately as an office.

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• 4.Deductions for the self-employed
• If you work for yourself, either on a part or
  full-time basis, you are eligible for a whole
  host of tax deductions. Some examples of this
  include business related expenditures on such
  things as mileage, shipping, advertising, office
  supplies and website fees. You can even deduct a
  percentage from your home internet charges if
  they were used for the business. Think about your
  business carefully, and be sure to make notes of
  any expenditures related to it.

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• 5.Social security taxes for the self-employed
• If you are self-employed and pay 100 of your
  social security taxes, you are eligible to deduct
  50 of those taxes paid your return doesnt even
  need to be itemised to be able to claim this.
• 6.Vehicle expenses
• A tax deduction that is often overlooked, comes
  in the form of unreimbursed vehicle expenses.
  Youre not able to subtract from the commuting
  costs, but travelling to satellite offices or
  having your own vehicle for business for which
  you havent been reimbursed, means that you can
  deduct mileage costs.

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• Tax credits
• If youve been attending college, then the
  American Opportunity Tax Credit is available for
  every year that youve been studying. College
  expenses that qualify for the deduction, can get
  you tax credits of up to 100 of the first 2,000
  spent, and 25 of the next 2,000 up to a maximum
  of 2,500 per student. You will need to meet
  certain income requirements before you can apply
  for this.

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• 8.Earned income tax credit
• This credit can lower the final tax amount for
  working families on a low and moderate income.
• 9.Add in reinvested dividends
• If youre an investor, when calculating your
  costs after youve sold a financial asset, be
  sure to add in all the reinvested dividends. When
  you go on to sell the investment, the cost basis
  is increased and your capital gain is reduced.

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• 10.Charitable deductions
• Checks, cash, donation of goods, clothing and
  charitable deductions made with payroll deduction
  are all deductible, and when totted up together,
  can make a sizeable amount, so try not to forget
  about them when it comes to planning for your
  taxes.
• Any tax professional worth their salt, will also
  be able to advise you of the myriad ways in which
  you can reduce your taxes, so dont be afraid to
  hire one if you really want to save yourself some
  money.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax preparation service
  Coral Gables. If you are looking for tax
  preparation service in Miami, Heyer Associates
  would be a right option.