Income Tax Savings Tips
NeONBRAND on Unsplash
@neonbrand
Finding tax savings and reducing your taxes can be a time-consuming task since existing tax laws change frequently while new tax laws are constantly introduced. Keep up-to-date on the latest methods of tax reduction and the most effective tax planning tips. One of the most important steps a wage or salary earner can do is monitor the ongoing tax withholding per paycheck. Whatever you enter on the W-4 now, you still won’t know how it will impact your next tax return regarding a tax refund or taxes owed. For example, if you received a tax refund as a result of your latest tax return or you are expecting a refund next year, you may decrease the amount of taxes withheld from your paycheck so you get your refund money now via increased paychecks. The challenge is to know how to balance this. On eFile.com, we make it easy to determine optimal withholding with free tools and calculators.
From there, you can prepare and e-file your 2020 Taxes with eFile.com and we will help select deductions and credits to get the most out of your refund. Your 2020 Tax Return is due April 15, 2021.
Tax-free income is compensation you receive which cannot be taxed by the IRS. Looking for a pay raise but not more taxes? Assistance in the form of money or services is nontaxable income. Here are several examples of expenses that can be paid or reimbursed by your employer without burdening you with any new income taxes:
Tax planning can help reduce your tax bill and earn you a bigger tax refund. Start your tax planning now so you are prepared once tax season arrives. Check out our list of tax planning tips and this helpful checklist that may help you increase your tax savings, optimize your tax deductions, reduce your tax burden, and ultimately save you money on taxes!
Tax Tip: Plan your tax savings during the months of October, November, and December so you are ready for tax season.
Start Federal and State Tax Returns
Turn your kindness into cash back! See how you can save money on charitable donations:
Put your tax planning into action and estimate your 2020 Tax Return with the easy to use eFile Tax Estimator and Calculator. To get the most out of your 2021 Tax Refund, prepare and e-File your 2020 Taxes with eFile.com and TAXercise your paycheck!
Keep up to date with changed, extended, or canceled tax breaks.
TurboTax® is a registered trademark of Intuit, Inc.
H&R Block® is a registered trademark of HRB Innovations, Inc.
Research & References of Income Tax Savings Tips|A&C Accounting And Tax Services
Source