Introduction
According to AG Morgan, if you’re like most Americans, you’re probably not saving enough for retirement. If you’re also like most Americans, you have more than one source of income—namely, your job and investments. So how do you make sure that every dollar counts toward securing your financial future? In this article, we’ll show you some simple tax-saving strategies that can help increase your savings by thousands of dollars per year. We’ll also look at a few ways to keep more money in your pocket right now by investing in yourself and your family’s health.
Contribute to a retirement plan
- Contribute to a retirement plan. If you’re not already saving for retirement, do it now. A 401(k), 403(b) or IRA can help you save for the future and reduce your taxable income in the process.
For those who qualify, contributing to an HSA can also be beneficial because it allows money set aside for medical expenses (including prescription drugs) to grow tax-free and be withdrawn without penalty at any time when used for qualifying expenses–or during retirement if there are no qualifying expenses left for which to use the funds by then!
Contribute to a health savings account (HSA)
If you’re a self-employed business owner or an employee with a high-deductible health insurance plan, a health savings account (HSA) can be an excellent way to save for future medical expenses.
An HSA allows you to contribute pre-tax dollars and invest those funds tax-free. Withdrawals are also tax free when used for qualified medical expenses such as prescriptions, co-pays, dental work or even gym memberships. If left untouched in your account until age 65 (or death), any remaining money becomes part of your estate and is not subject to estate taxes in most cases as long as it has been used for qualified medical expenses before then!
Don’t forget about your children
If you have children, make sure that they are not forgotten when it comes to tax savings. The child tax credit is a great way to reduce your taxes and help out with some of the expenses associated with raising kids. If your child is in college or planning on going in the future, don’t forget about the American Opportunity Tax Credit (AOTC). This credit can provide up to $2,500 per student per year for up to four years of college tuition costs–and unlike other education-related credits, there’s no limit on how much money can be claimed through AOTC!
If you own a home, take advantage of charitable donations and the mortgage interest deduction.
If you own a home, take advantage of charitable donations and the mortgage interest deduction. As part of your annual tax preparation, consider donating to charity or religious organizations. If you have children in school and are able to make contributions on their behalf, do so.
A donation made directly to a qualified organization may be tax-deductible if it meets certain requirements: The amount must be at least $250; it must be made with cash (not goods); and the charity must receive written acknowledgment from the organization within 60 days after making the contribution (and keep copies at home).
Conclusion
The bottom line is that there are many ways to save money on your taxes. You just need to know where to look and how the various strategies work.
