What Are Some Little Known Ways To Reduce Your Taxable Income? By Aron Govil
Are you looking for ways to reduce your taxable income? You aren’t the only one.
Tax law changes in recent years have increased the number of tax deductions and credits available and allowed more people than ever before to avoid paying some federal income taxes. What we’re saying is that it’s never been more important or financially rewarding to find strategies that reduce your taxable income.
In fact, reducing your taxable income can give you a fairly substantial increase in take-home pay. Here are 3 lesser-known strategies to consider: Aron Govil
Employing a “Harvest Strategy” With Retirement Accounts
A common strategy for retirement planning is to make contributions up to the annual maximum allowed by law and then let the account grow. When you retire, you withdraw funds from the account to supplement your income so that it will be low enough that you won’t have to pay taxes at a high rate.
Using Life Insurance Strategies to Your Advantage
Life insurance can serve as an incredible estate planning tool for wealthy families looking to minimize their estates’ value while simultaneously passing wealth onto future generations. For example, if set up properly, life insurance strategies can provide substantial liquidity (tax-free) and reduce capital gains exposure on an estate’s assets without changing beneficiaries or depleting the estate’s assets.
Prioritizing Charitable Contributions Year After Year
It is no secret that charitable contributions are tax-deductible; however, most people only make donations in December because they feel pressured to do so. In reality, the only thing that changes between December and January is your tax return. By making a charitable contribution in December, you could lose out on valuable deductions that may never be recaptured.
One simple way to avoid this pitfall is by creating a “charitable contributions” fund in which you add money throughout the year for donations instead of waiting until the end of the year when it’s too late to take advantage of possible deductions.
Are You Ready To Get Serious About Taxes And Reduce Your Taxable Income? It’s Time To Take Action!
If you’re ready, here are 3 ways we can help:
1) Book a Free Tax Review with Us
A simple 30-minute phone call where we go over your tax situation and show you how to reduce your taxable income.
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In our newsletter, we share tons of great money-saving tips like the ones in this article as well as ways to help our clients reduce their taxable income and stay up-to-date on all things taxation.
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We want to connect with you today because now is the time to start taking action towards reducing your taxable income (before it’s too late). Take comfort knowing that there are experienced professionals standing by ready to help.
The three strategies listed above are just a few of the many ways to reduce your taxable income. For more information and advice, please contact us today for a free consultation. We would be happy to discuss your individual situation and recommend appropriate measures to take in order to minimize your tax liability.
If you’re looking for more tips on reducing your taxable income, be sure to sign up for our newsletter or fill out the form at the top of this page. We’ll get in touch with you ASAP so you can start saving money on your taxes today!
Q: How can I reduce my taxable income?
There are many different ways to reduce your taxable income, and the three strategies listed above are just a few of them. For more information and advice, please contact us today for a free consultation. We would be happy to discuss your individual situation and recommend appropriate measures to take in order to minimize your tax liability.
Q: What is the best way to reduce my taxable income?
The best way to reduce your taxable income depends on your specific situation. However, some common strategies include employing a “harvest strategy” with retirement accounts, using life insurance strategies to your advantage, and prioritizing charitable contributions year after year. Please contact us today for a free consultation so we can discuss your individual situation and recommend the best way to reduce your taxable income.
Q: What is the deadline for reducing my taxable income?
The deadline for reducing your taxable income depends on your specific situation. However, most measures should be taken before the end of the year in order to maximize their benefits. Please contact us today for a free consultation so we can discuss your specific situation and recommend appropriate measures to take.
Conclusion by Aron Govil :
Tax planning is an important task for any individual or family, but it can be especially crucial for those who are looking to minimize their taxable income. There are many different ways to reduce one’s taxable income, and the strategies that work best will vary from person to person.