But a little knowledge goes a long way toward finding other ways to reduce taxable income. “No one is going to be your advocate like you will be,” Fellon said. Here are strategies experts recommend for reducing your taxable income. One big, easy way to reduce taxable income T...
One of the most straightforward ways to reduce taxable income is to maximize retirement savings. Although there are many types of retirement savings accounts to choose from, below are two of the most common that can help reduce taxable income in the tax year in which a contribution is made. ...
000 ($7,000 if you're age 50 or older), or your taxable compensation for the year, if your compensation was less than this dollar limit.8For 2023, the maximum contribution limit rises to $6,500 ($7,500 if you're age 50 or older).9...
Pre-taxcontributions to a Health Savings Account(HSA) can also reduce your taxable income. You can make these up until the filing deadline as well. Certain requirements must be met in order to open and contribute to an HSA: You must be enrolled in a health insurance plan that has high...
This allows businesses to reduce their taxable income today, but increasing it later as compared to using straight-line depreciation. This gives you a lower net present value of your tax burden, saving you money. Investing in your company allows you to deduct these expenses all at once, or ...
Steve Infanti
Even if you've already earned most of your income for the year, you can still make some common-sense moves to reduce the amount of income taxes you owe in the current tax year.
Set up automatic contributions to your employer-sponsored retirement plan, such as a401(k), which uses pre-tax dollars to fund your retirement and can lower your taxable income. What’s more, some employers offer to match employee 401(k) contributions, providing essentially free money to help ...
Reduce Your Debt Ways to Make Passive Income with Little Money How To Make Passive Income What Is Passive Income? Passive income is money you make when you're not actively working. It usually requires either: An upfront investment of money, or An upfront investment of time Whether you want...
Save by reducing your taxable income: Take advantage of deductions, make deductible contributions to retirement accounts or increase amount sent to flexible spending or health savings accounts. This list is just the beginning. Saving money can really become a way of life if you want it to be. ...