You've filed your 2018 tax return and either celebrated a return or mailed the IRS a check for what you owe. Now you are wondering..."Is there anything I can do to save more and pay less in 2019?"
Getting excited about filing a tax return may be a stretch, but saving more and paying less is possible. Check out these ideas and consult with your tax advisor for the best options for your individual situation.
1. Increase the contribution to your employer sponsored retirement plan.
Some Friendship State Bank and Friendship Insurance employees opt to have a portion or their entire annual bonus or a portion of their raise applied to their retirement accounts instead of their checking accounts. Work bonuses are often taxed at a higher rate so this option helps decrease the amount of taxes paid while boosting your retirement savings.
Getting excited about filing a tax return may be a stretch, but saving more and paying less is possible. Check out these ideas and consult with your tax advisor for the best options for your individual situation.
1. Increase the contribution to your employer sponsored retirement plan.
Some Friendship State Bank and Friendship Insurance employees opt to have a portion or their entire annual bonus or a portion of their raise applied to their retirement accounts instead of their checking accounts. Work bonuses are often taxed at a higher rate so this option helps decrease the amount of taxes paid while boosting your retirement savings.
2. Open a home equity line of credit for a household repair project, vacation or vehicle purchase.
HELOC interest is usually tax deductible like paid mortgage interest.
HELOC interest is usually tax deductible like paid mortgage interest.
3. Increase charitable donations.
If you know you are going to owe money – you might as well give it to your favorite local non-profit or church rather than giving it to Uncle Sam.
If you know you are going to owe money – you might as well give it to your favorite local non-profit or church rather than giving it to Uncle Sam.
4. Schedule a recurring automatic deposit to your Indiviual Retirement Account (IRA) or Health Savings Account (HSA).
This is an easy was to make sure you are taking full advantage of the tax savings benefits of an IRA or HSA without having to make a large, one time contribution. Be sure to double check your math or speak with your accountant so you don’t go over the required contribution limits.
This is an easy was to make sure you are taking full advantage of the tax savings benefits of an IRA or HSA without having to make a large, one time contribution. Be sure to double check your math or speak with your accountant so you don’t go over the required contribution limits.