{"id":77767,"date":"2022-12-02T06:08:49","date_gmt":"2022-12-02T06:08:49","guid":{"rendered":"https:\/\/businessyield.com\/?p=77767"},"modified":"2022-12-02T06:12:36","modified_gmt":"2022-12-02T06:12:36","slug":"some-tips-to-reduce-taxable-income","status":"publish","type":"post","link":"https:\/\/businessyield.com\/tax\/some-tips-to-reduce-taxable-income\/","title":{"rendered":"<strong>Some Tips to Reduce Taxable Income<\/strong>","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n<p>As a smart citizen of the country, you must do your part and pay a fair share of your taxes. But, as an intelligent businessperson or financially responsible person, you should know the tips and tricks to help you save money on taxes.\u00a0<\/p>\n\n\n\n<p>Now the question is- <a href=\"https:\/\/caseymosstax.com\/articles\/high-income-tax-strategies\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>How to reduce taxable income<\/strong><\/a>? This blog has discussed this matter vividly. Please read on.<\/p>\n\n\n\n<h2 id=\"owning-rental-property\" class=\"wp-block-heading\">Owning Rental Property<\/h2>\n\n\n\n<p>Owning rental property can be an excellent path to reduce one&#8217;s taxable income. If fellows own a second home or investment property that they rent out, not only are they reducing their tax liability, but they&#8217;re also getting paid for the use of it.<\/p>\n\n\n\n<p>Many folks like to buy a vacation home in another state and rent it out when they aren&#8217;t using it themselves. If that sounds like something up your alley, there are other benefits as well:<\/p>\n\n\n\n<ul><li>You might be able to deduct the mortgage interest on this property, which is usually not available if you live in the house yourself<\/li><li>There might also be depreciation deductions from owning an income-producing asset such as real estate<\/li><li>You will also receive certain tax breaks by incorporating yourself as an LLC or similar structure if needed<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-buying-insurance-plans\"><span id=\"buying-insurance-plans\">Buying Insurance Plans<\/span><\/h2>\n\n\n\n<p>Insurance is a great way to reduce one&#8217;s tax burden. For example, one can buy insurance plans such as:<\/p>\n\n\n\n<ul><li>Health insurance<\/li><li>Life insurance<\/li><li>Disability insurance<\/li><li>Homeowners Insurance<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-donate-to-registered-charities\"><span id=\"donate-to-registered-charities\">Donate to Registered Charities<\/span><\/h2>\n\n\n\n<p>If you wish to donate to a charity, be sure it is registered with the IRS. People can find a list of registered charities on the IRS website. They can also donate money or property directly to a local government unit (city, county, or state) for its use for charitable purposes.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-401k-plans\"><span id=\"401k-plans\"><strong>401K Plans<\/strong><\/span><\/h2>\n\n\n\n<p>401(k) plans are employer-sponsored retirement plans that allow employees to save for retirement. The employees contribute a portion of their salary to the 401(k) plan, and the employer may match their contributions. These accounts are tax-deferred until they&#8217;re withdrawn at retirement age.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-simple-iras\"><span id=\"simple-iras\"><strong>Simple IRAs<\/strong><\/span><\/h2>\n\n\n\n<p>Simple IRAs are easy to set up, manage and transfer. So a Simple IRA is the best way to save for retirement or other goals with a tax-advantaged account.<\/p>\n\n\n\n<p>Simple IRAs are not just for one employer.<\/p>\n\n\n\n<p>If your employer offers both traditional and Roth IRAs, you can contribute to either or both of them each year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-hsa-contributions\"><span id=\"hsa-contributions\"><strong>HSA Contributions<\/strong><\/span><\/h2>\n\n\n\n<p>Contributions to a <em>Health Savings Account<\/em> <a href=\"https:\/\/www.investopedia.com\/terms\/h\/hsa.asp\" target=\"_blank\" rel=\"noreferrer noopener\">(HSA)<\/a> are tax-deductible, and you can withdraw money from your HSA anytime to cover medical expenses. You could also withdraw money from an HSA to pay for non-medical expenses such as over-the-counter drugs and contact lenses.<\/p>\n\n\n\n<p>You can contribute up to $6,750 for 2018 or $7,000 if you&#8217;re 50 or older by the year-end. If you contribute more than that amount in 2018, the excess will be carried forward into 2019 without penalty.<\/p>\n\n\n\n<p>If you are concerned about your taxable income and want to reduce it, you must follow these tips on<strong> how to reduce taxable income<\/strong>. It will help you save money on your tax return while also helping your budget in the long run. Please consult with an experienced tax professional to calculate such delicate matters.&nbsp;<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"As a smart citizen of the country, you must do your part and pay a fair share of&hellip;\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":79,"featured_media":77771,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_jetpack_memberships_contains_paid_content":false,"jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[4318],"tags":[],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.4 (Yoast SEO v22.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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