5 Ways to Reduce How Much You Owe For The 2021 Tax Year

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5 Ways to Reduce How Much You Owe For The 2021
Tax Year

• The present federal income tax brackets range
  from 10 percent to 37 percent, but you can get
  away with paying less in taxes if you are smart
  about claiming deductions credits.

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Open A Health Savings Account

• If youve a qualified high-deductible medical
  plan, contribute to a health savings account.
  Contributions to these accounts provide an
  instant tax deduction, grow tax-deferred and can
  be withdrawn tax-free for entitled medical
  expenditures.

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Claim A Home Office Deduction

• Dont be frightened to take advantage of the home
  office deduction if you work for yourself or have
  a side business. To be eligible for the
  deduction, the space need to be used frequently
  and only for business purposes.

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Deduct Half of Your Self-employment Taxes

• While employers divide the cost with their
  employees, self-employed individuals are
  accountable for paying the whole sum themselves.
  To recompense for the additional expenditure, the
  government will let you minus 50 percent of the
  sum paid from your income taxes. You dont even
  require to itemize to claim this tax deduction.

Write down travel expenditures, even while on
vacation
Combine your business trip with a vacation, and
you could decrease vacation expenses by
subtracting the percentage of the expenditures
spent for business purposes. This could include
airfare part of your hotel bill, proportional
to the time invested on business activities.
Discuss with a tax pro about how to make this
calculation properly.
Avoid Capital Gains Tax by Donating Stock
The best way to avoid capital gains is by using
stocks to make charitable gifts. You have the
luxury to move stocks that had massive gains
directly into a donor-advised fund.
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