Are you looking for some easy ways to lower your annual tax bill? Here are some great end-of-year tips for reducing your taxable income!
Make Charitable Contributions
If you have a lot of unwanted items lying around, you should think about donating them to charity. You will need to follow special rules for non-cash contributions and you will need to itemize, but this is a great way to support a cause and help to reduce your taxable income. You can also donate cash to charities, and this will reduce your taxable income.
Add to Retirement Accounts
One of the best ways to reduce your taxable income is to put money into retirement accounts, such as a 401(k). Doing this will not only reduce your taxable income, but it will also help to set you up for success in the future. Check to see what the contribution limits are for the year and do your best to contribute the maximum amount.
Finding ways to reduce your income each year will ensure that your tax bill stays as low as possible. To learn more about how you can decrease your taxable income, turn to the pros at Taxation Solutions, Inc.