Tax Planning & tips for saving money
Tax planning is an important component for your overall financial plan. Careful planning throughout the year can assist you in reducing the taxes you pay - as well as help you achieve your financial goals. At AG TaxExpress we go beyond tax compliance and proactively recommend tax saving strategies to maximize your after-tax income.
Retain receipts / Adequate Records / Proper Documentation
Before getting into the specifics, however, we would like to stress the importance of proper documentation. Many taxpayers forgo worthwhile tax deductions because they have neglected to keep receipts or records. Keeping adequate records is required by the IRS for employee business expenses, deductible travel and entertainment expenses, and charitable gifts. But don't do it just because the IRS says so-neglecting to track these deductions can lead to overlooking them. You also need to maintain records regarding your income. If you receive a large tax-free amount, such as a gift or inheritance, make certain to document the item so that the IRS does not later claim that you had unreported income.
- Max out your 401(k) or similar employer plan
- If you have your own business, set up and contribute to a Retirement Plan
- Contribute to an IRA
- Defer bonuses or other earned income
- Accelerate capital losses and defer capital gains
- Invest in Treasury Securities
- Give appreciated assets to charity
- Keep track of mileage driven for business, Medical or Charitable purposes
- Take advantage of your employer's benefit plans to get an effective deduction for items such as Medical Expenses
- Check out separate filing Status
- If Self-Employed, Take Advantage of Special Deductions
- If Self-Employed, Hire Your Child in the Business
- Take out a Home-Equity loan
- Bunch your actual itemized deductions
- You can take distributions from your IRA without paying the 10% early withdrawal penalty.
Please contact AG TaxExpress to learn more about tax plnning and saving strategies.