Find Out How Year-Round Tax Reduction Strategies Can Increase Your Savings
Taxes—you’ve got to pay them, but there’s no reason to pay more than necessary, right? With careful planning, you can reduce your IRS liabilities and keep more of your hard-earned money where it belongs—with you!
In "Last Minute Tax Tips: Boost Your Refund & Cut Your Bill", Trustway Accounting shares practical strategies for maximizing tax refunds and minimizing tax bills. Access the full article for free at .
Tax Planning Fundamentals
Trustway Accounting’s guide explores the fundamentals of tax planning and offers strategies to help you better organize your finances and reduce contributions. With years of experience, the firm assists clients in planning taxes, improving cash flow, and claiming IRS rebates.
Income Structures
The guide discusses how you can leverage tax credits, choose tax-friendly investment vehicles, and structure your income and expenses to significantly reduce your tax bill. Businesses also benefit from careful tax planning, which frees up capital for reinvestment. Trustway Accounting helps you achieve these goals in compliance with state and federal tax laws, ensuring you avoid penalties and fines for mismanagement.
“Tax planning is not something to think about only at the end of the year. It's a year-round activity," the guide states. "Planning ahead allows you to structure your finances in ways that minimize taxes over time, rather than scrambling to make last-minute decisions.”
Deductions
The guide highlights the importance of deductions in reducing IRS bills. For instance, it explains that standard deductions apply to most taxpayers but vary depending on filing status, such as married filing jointly or single. Meanwhile, itemized deductions can be claimed for specific expenses like charitable contributions, mortgage interest, state taxes, and medical expenses. Both types of deductions lower the final taxable amount, reducing the tax you owe.
Credits
Tax credits provide another method for reducing your tax liabilities. While deductions reduce the portion of income subject to tax, credits are applied directly to your tax bill on a dollar-for-dollar basis, subtracting from the amount owed. Trustway Accounting emphasizes that credits are particularly valuable because they are not income-dependent.
Deferrals and Beyond
The guide also explores tax deferral strategies. For example, you can defer income to the following tax year, delaying tax payments on these amounts. “This is especially useful if you expect your tax rate to be lower in the next year or if you want to delay paying taxes on income until you need it,” the guide states.
Additionally, it provides an overview of income shifting, tax-deferred investments, offsetting capital gains, audit protection, and business structures as tools to manage and reduce taxes owed.
Access the full guide today for free at .
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