Join Neal, founder of Tax Sherpa, while he goes over our 4-step process to saving $18,179 in taxes… all without making any more or spending any less….(read more)

LEARN MORE ABOUT: Qualified Retirement Plans

REVEALED: How To Invest During Inflation

HOW TO INVEST IN GOLD: Gold IRA Investing

HOW TO INVEST IN SILVER: Silver IRA Investing

4 Steps to Saving $18,179 on Your Income Taxes This Year

Saving money on income taxes is a top priority for many individuals and families. With the right strategies and planning, it is possible to reduce your tax burden significantly. In fact, you could potentially save as much as $18,179 on your income taxes this year by taking advantage of various deductions, credits, and other tax-saving opportunities. Here are four steps to help you achieve this goal.

1. Maximize your retirement contributions:
One of the most effective ways to reduce your taxable income is by contributing to retirement accounts such as 401(k)s, IRAs, and Roth IRAs. By maximizing your contributions to these accounts, you can lower your taxable income and potentially save thousands of dollars in taxes. For 2021, the contribution limit for 401(k) accounts is $19,500, while the limit for traditional and Roth IRAs is $6,000. If you are over 50, you can make catch-up contributions of an additional $6,500 to your 401(k) and $1,000 to your IRA. By taking advantage of these contribution limits, you can significantly reduce your tax bill.

2. Take advantage of tax credits:
There are various tax credits available that can help you save money on your income taxes. For example, the Child Tax Credit, the Earned Income Tax Credit, and the American Opportunity Tax Credit can all help reduce your tax liability. Make sure to review all available tax credits and see if you qualify for any of them. By claiming these credits, you can potentially save thousands of dollars on your income taxes.

3. Itemize your deductions:
If you have significant expenses that can be itemized, such as mortgage interest, property taxes, medical expenses, and charitable contributions, it may be advantageous to itemize your deductions rather than taking the standard deduction. By itemizing, you can reduce your taxable income and potentially save a substantial amount of money on your taxes. Be sure to keep accurate records of your deductible expenses and work with a tax professional to ensure that you are maximizing your deductions.

4. Utilize tax-advantaged accounts:
In addition to retirement accounts, there are other tax-advantaged accounts that can help you save money on your income taxes. Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) can be used to pay for qualified medical expenses with pre-tax dollars, reducing your taxable income. Additionally, 529 education savings plans can help you save for education expenses while providing tax benefits. By utilizing these tax-advantaged accounts, you can lower your tax liability and potentially save thousands of dollars on your income taxes.

By following these four steps, you can potentially save a significant amount of money on your income taxes this year. Consider working with a tax professional to help you maximize your tax-saving opportunities and ensure that you are taking full advantage of all available deductions and credits. With careful planning and strategizing, you can reduce your tax burden and keep more money in your pocket.