The tax laws passed in 2017 could save you plenty of money if you know what to do now. There’s a way for everyone to save, so read on for some of the best ideas for lowering your 2018 tax bill.
Tax-deferred Savings
You can’t take it with you! Contribute the maximum to your 401k or retirement pension. There’s a double benefit: you’re saving for retirement and reducing your current tax bill. If you have the available cash, make a hefty deposit into your account.
Here’s to Your Health
If your employer has a Health Savings Plan, be sure to take advantage of it. The money you deposit into your account is tax-free when used to pay your medical expenses. If your employer doesn’t offer this benefit, or if you’re self-employed, you can open an account yourself.
Charitable Contributions
This tax-saving option is another example of doubling the benefit of your action. When making a significant charitable donation, think about using appreciated stocks or money market shares you’ve owned at least one year. You can write off the donation at its current market value, not what you initially paid for it.
Go into Business for Yourself
If you’ve always wanted to get out of the 9-to-5 grind, it’s a great time to start your own business. There are tax credits for sole proprietorships, S Corps, and LLCs. There’s no time like the present. A home office is a similar option for reducing your taxable income.
Go Green
Installing alternative energy equipment in your home will add up in tax savings. There is no limit to this tax credit until 2019. Don’t delay and miss the opportunity.
Education Tax Breaks
Make another smart saving choice if you’re getting your education. An employer-funded education doesn’t come out of your pocket at all, but if that’s not an option available to you, be sure to take the deduction for the tuition you pay.
Caring for Others
Whether it’s child-care, elder-care, or a disabled spouse, use a child-care reimbursement account through your employer. The account can be used for adults as well and the money comes from pre-tax dollars.
For more tax-saving opportunities, consult the experts at ORT Consulting. We’ll evaluate your total tax situation and help you make your money work for you. Call us today.
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