There are several strategies you can consider to potentially lower your taxes. We recommend scheduling a time to meet with your dedicated tax accountant to discuss which strategies are appropriate for your specific situation. We're here for you!
That being said, here are some common strategies to reduce your tax liability:
Take Advantage of Tax Credits
Tax credits directly reduce your tax liability. Common tax credits include the Child Tax Credit, Education Credits, and the Earned Income Tax Credit. Research available credits or talk to your dedicated tax accountant about what tax credits might be applicable for your situation.
Maximize Deductions
We recommend using your business bank account for all business purchases and providing our team with your bank statements throughout the year so we can maximize your deductions. In addition, be thorough when filling out your tax checklist for our team. This will provide us with information to capture additional deductions for you and your business.
Contribute to Retirement Accounts
Contributions to retirement accounts, such as 401(k)s or IRAs, may be tax-deductible, reducing your taxable income. Additionally, the growth of investments in these accounts is tax-deferred until withdrawal.
Utilize Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
Contributions to FSAs and HSAs can be made on a pre-tax basis, reducing your taxable income. These accounts can be used to cover eligible medical expenses.
Take Advantage of Education Savings Plans
Contributions to Education Savings Accounts (ESAs) or 529 plans for qualified education expenses can provide tax advantages at the federal and, in some cases, state levels.
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