Quit Setting Your Money On Fire

Tips To Save On Your Taxes

by Kathryn Watson

Tax time is different for everyone, some don't look forward to April 15th, as they owe every year on their taxes. For others though, they get a big chunk back that helps take them on a vacation every year. Whether you're in the first group or the second group, there are things you can do to help you with your taxes. Read on for some helpful tips.

Reduce Your Taxable Income

No, this doesn't mean you should make less money. You simply need to reduce your taxable income. To do this, you can invest more of your money. Invest your money. Invest in an IRA, or other type of retirement account. You can also invest money in an HSA account, or an FSA account. Investing in a child's college fund can also reduce your taxable income.

Adjust Your Withholding

Adjust the amount you're withholding from your paycheck for your taxes. If you aren't getting any money back at the end of the year and end up owing every year, you need to adjust your withholding. Withhold extra money on your taxes to help cover your taxes so you aren't getting a large bill and aren't having to come up with so much money all at once. If you get back a large sum at the end of the tax year, adjust your withholding so you don't have as much coming out. This will give you more money back with each paycheck, rather than allowing the IRS to hold onto your money throughout the entire year. You can invest that extra money and earn interest on it, rather than allowing the IRS to do this.

Talk To A Tax Professional

If you have issues with your taxes, where you aren't sure why you owe every year, or don't understand why you get back so much, you can talk to a tax professional about your taxes. They can offer tips on how to file and offer advice on how to get more back. They can also help offer tips on how to pay each quarter so you don't have to pay a large sum at the end of the tax year. This can also save you money on extra fees that the IRS tacks on when you owe.

If you aren't sure about your taxes, hire a professional, like Jeffrey Beebe CPA, to take a look at them. Stop doing them on your own, as you may be missing out on some big deductions that you may not have been aware of.