Taxes – income taxes US
Taxes and death: it is an old saying, but it is true –
neither is avoidable. However, with a bit of work, you
can at least survive paying your taxes! The IRS has
hundreds of ways for you to reduce your US income taxes,
although most fall under just a few headings. This
article will outline the main steps you can take to
reduce your income taxes in the USA.
Make less money (really!)
The income tax you pay is based on a percentage of your
income – the money you made in a year, whether from a
salaried job, investments, or freelance work. Therefore,
and not surprisingly, if you reduce the amount of money
you make in a year, you will pay less income tax. But
doesn’t that mean you will just be in a worse off
position at the end of the year? Not necessarily – the
trick is to reduce, not your actual income, but your
adjusted gross income.
Your adjusted gross income is an important number when
figuring out your taxes. To calculate your adjusted
gross income, you take all the money you made from any
source in a year, minus any adjustments. The higher your
adjusted gross income, the more US income tax you will
pay. The key, therefore, is to lower your adjusted gross
income using any of a number of adjustments that the IRS
has made available.
How to lower your adjusted gross income
The main way to lower your adjusted gross income is to
invest in your retirement. That’s right – not only will
you end up paying less income tax, but you will be
securing your future financial stability. You can do
this by having your employer directly deduct a portion
of your earnings into a 401(k) plan or a traditional IRA
plan. Both plans allow your earnings to grow on a
tax-deferred basis. That means that instead of paying
tax on the income you put into your 401(k) plan or
traditional IRA plan in the year you make the
contribution, you pay tax on the income when you
withdraw it from your retirement plan. Because you will
likely be making a lower income in your retirement, you
will be in a lower tax bracket and be able to keep more
of your money. While the IRS has limits on how much
money you can put into tax-deferred retirement plans
(currently, you can put up to $4000 a year into a
traditional IRA plan), it can still be a significant way
to lower your adjusted gross income.
Keep track of tax deductions
The IRS also provides a number of ways that you can
reduce the amount of taxes you have to pay. This is done
primarily by letting you deduct taxes you have already
paid at the state or municipal level (such as state
income tax, sales tax, or property taxes). Other
expenses, such as donations to registered charities,
payments for job-related goods, and mortgage interest,
can also reduce the amount of income tax you have to
pay.
|
|
|
|
|
|
|
|
|
Review Our Directory for Income Tax Planning
|
|
|
|
|
|
|
|
|
|
|
Our Best Web Links For Income Tax Planning
|
1. Kerr Financial Corporation: Our Services
... for business owners and professionals investment management services estate planning and administration income tax planning and tax return preparation Corporations (see details below) financial ...
http://www.kerrfinancial.ca/e/services.htm |
2. The Taxes Web
Information about taxes
http://www.thetaxesweb.com |
3. The Preferred Group of Mutual Funds - Glossary
... income tax, and sometimes also state or local income tax. see also equivalent taxable yield. tax ... ... Clinton signed into law on August 5, 1997. tax planning Considering the tax implications of ...
http://www.preferredgroup.com/Glossary/t1.aspx |
4. TOS - Canadian personal income tax preparation, tax consultant, tax planning...
Tax Consultant Services 10 years experience as a Personal Tax Consultant Specializing in small business home office and personal income tax Quick & efficient using the latest professional tax program ...
http://www.toscanada.com/ |
5. Tax Help | Reduction | Information - FOXNews.com
... ENERGY :: PERSONAL FINANCE :: VIDEO SEARCH Tax Planning Business > Personal Finance > Tax Planning FEATURES Haven't Filed Your ... relief and your hidden ...
http://www.foxnews.com/bu .../personalfinance/tax/ |
6. Taxes, Tax & Tax Software - TurboTax
... Popular Searches Refund Bonus Access 2004 and prior returns Reinstall prior year products TurboTax rebates Products & Services Quicken financial products Affiliate/Alliance Program Tax Planning IRS ...
http://www.turbotax.com/ |
7. Tom Morrison's 2002 Year-end Income Tax Planning
2002 YEAR-END INCOME TAX PLANNING FOR INDIVIDUALS By Tom Morrison, C.P.A. Phone: 205-871-6770 INTRODUCTION Each year, we work with our clients to maximize tax savings through year-end planning ...
http://www.morrisoncpafirm.com/2002TT.html |
8. James Harrison, Associate Business Law and Federal Income Tax Planning
James is an Associate and practices in the areas of federal income tax planning and business law, with an emphasis on structuring businesses and complex business transactions to protect clients and ...
http://www.coatsrose.com/james_harrison.htm |
9. Income tax planning
income tax planning income tax planning findest no place spear; he rolled to get supplies from Dr. to the sea Chiron, sole heiress of what destruction of much We produce as secretly practiced: I haue ...
http://income-tax-planning.sky.waw.pl/ |
10.
income tax planning designs tattoo pictures tattoos outdoor solar lights advantage credit union northern lights video taurus tattoo moms work from home tax preparers channel 7 eyewitness news wood ...
http://income-tax-planning.gcijeziorany.com.pl/ |
11. income tax planning software - 1st Tax
... time. Additional Sites Related To: income tax planning software INCOME TAX SOFTWARE - Superb Tax Firms!!! Income Tax Software Online Income Tax Software Internet Guide (USA and international worldwide ...
http://tax.beamtino.info/ ...lanning-software.html |
12. Phil Levin, specializes in legally aggressive income tax planning, preparati...
Phil Levin, Enrolled Agent specializes in legally aggressive tax planning and preparation for businesses and individuals. As an Enrolled Agent, Phil is a true tax specialist - unlike a host of other ...
http://www.legallyaggressivetaxprep.com/ |
13. Certified Financial Planner Board of Standards Inc. - Getting Control of You...
... & Resource Library Feedback E-MAIL THIS PAGE PRINT THIS PAGE Getting Control of Your Income Tax Planning Many Americans dread April 15 when the deadline looms for filling out federal and state ...
http://www.cfp.com/learn/situation.asp?id=8 |
14. Welcome to JLFranklin Wealth Planning
... Course Selling Company Stock Kids' investment income Bond Basics Your Fun Money Portfolio How to ... ... Mutual Fund Finding Cash for a Down payment Tax Planning 401(k) and Retirement Plan Contribution ...
http://www.jlfwealth.com/tips/ |
15. Pensions, inheritance tax planning, income protection by rm financial advice.
... Us | Life Insurance | Critical Illness | Income Protection | | Long Term Care | Private ... ... Pensions | Investments | Inheritance Tax Planning | | Savings | Mortgages | Accident ...
http://www.rmfinancialadvice.com/pensions.htm |
16. AAA Insurance :: AAA Versekering
... Request information to top Income Tax Planning according to legal methods to pay less tax within the framework of the given legislation. This is often referred to as tax evasion. Tax evasion is an ...
http://www.aaainsurance.co.za/products.htm |
|
