The IRS collections trillions of dollars in taxes from U.S. citizens and businesses alike. The vast majority of that money comes from high earning individuals.
If you’re a person that falls into a tax bracket that places you in the top 10% of earners, you likely see over half your income move out of your checking account and into the United States treasury’s each year.
That is, of course, unless you’re able to exercise tax saving strategies that can help you combat the system.
There are more tax saving strategies out there then we have the time to cover in a single blog post. Below, we touch on a few low-hanging tips that can make a real difference in your bottom line so keep reading to start saving!
1. Invest in Your Retirement
If you’re worried about making too much money in a given year, putting a sizable chunk of income into your retirement can save you big come April. Income that’s invested in a retirement account is income you get to deduct, meaning, as far as Uncle Sam is concerned, that’s income you didn’t make this year.
With a sizable retirement deduction, you may be able to get out of the most brutal of tax brackets.
2. Consider Charitable Giving
Charitable giving is another means of moving into a lower tax bracket. While that money you give away isn’t money you’ll necessarily be able to get back, it can afford you certain perks you wouldn’t get just by handing your money over to the government.
Talk with a tax professional to see how a giving strategy may be able to save you money during tax season while also helping directly support the things you most care about.
3. Keep an Eye on Real Estate
Whether it’s an enhanced capital allowance, mortgage interest deductions, refurbishment credits, or any number of other real estate perks, know that if you own property, you have several ways to save money on taxes.
Again, a tax professional can help you assess your property portfolio and string together beneficial tax strategies. We recommend bringing a tax pro onto the ground floor of your real estate ventures as some tax advantages may be lost if you wait too long to claim your benefits.
4. Hire a Great Accountant
You may have guessed this tax saving strategy is a “must-do” based on our previous points. In case it isn’t obvious, let us state explicitly that a great accountant is worth their weight in gold.
Don’t settle for an online program or a virtual CPA when it comes to your money. Find an in-person professional that can be your partner year-round.
5. Vote in Your Interest
Tax laws have a massive impact on how you’re able to get out from under large tax burdens. Therefore, it makes sense to vote for candidates that are pushing interests that can positively impact your situation.
Listen to what’s being posed by politicians and always exercise your right to vote!
Great Tax Saving Strategies Save People Like You Thousands
It can be tempting to throw your income numbers into a Turbo Tax-like program each year and call it a day on taxes. Fight that urge.
Exercising tax saving strategies and working with a trusted CPA can save you tens of thousands of dollars or more on what you owe each year.
We hope you find the savings you’re looking for come tax time and welcome you to explore more of the best tax saving strategies on our blog if you’d like additional guidance.