It is never one of your best times when paying taxes come knocking to your doorstep. You cannot escape it anyway but you can get smarter about it. You wish that there was a way to save a dime from being taxed. You are not alone feeling this way. Who doesn’t want to save a little on tax? It is not you and definitely not me.
What if I tell you that there was a way to have it your way? Do not be shocked by this hard news. Yes, you can safe on your taxes. Do not worry, you will not find yourself on the wrong side of the law. It is all legal.
Consider this scenario: It happens that I was worried about my perennial plummeting of my taxes. When I make more; the taxman wants more from me. I sought the counsel of a friend who happens to be a tax expert. My friend did not disappoint for he happily let the cat out of the basket. I will not mind to share the secrets. Embrace yourself for the top 17 tax saving tips. You will be spoiled for which option to go for. Ensure you choose smart.
Safe considerable dimes with these top 17 tax saving tips
1. Recheck your Tax Code:
There are lots of people placed in the wrong tax code (TAX SLAB). And they are paying more than they should. You could be just one of those. Ensure that you check your code. Make it a yearly Practice to confirm your code. If you are in a higher code than your tax status, you will be taken down and safe what you have never saved for years.
2. Maximize on Your Mortgage:
Yes, your mortgage is a tax haven. You can claim tax relief if you have a mortgage to service. It does not matter that the property is abroad; you earn the relief.
3. National Insurance
Are you still making a contribution to the national insurance and yet you have retired? Stop it and you have less expense to worry about. Remember it works only if you have attained the retirement age.
4. Make your Work Parking Reduce your Taxes:
If you pay for your parking at work then your employer owes you $ 245. And it is all tax-free to the last penny.
5. Give out your Vehicle for Charity:
You deserve reimbursement every time your private vehicle is used for charity. For every mile, a check comes your way and it is not subject to taxation.
6. Get your hands on Energy-Efficient Car:
If you bought yourself an electric-driven car, congratulations. You now qualify for a tax credit of up to $7,500.
7. Check your Tax Credit
Are you a low or moderate income earner? If you earn less than $50, 000 check your qualification into income tax credit. If you do, the burden is off your back and you can take a deserved financial breathe.
8. Save More on Retirement:
Did you know that your retirement saving is not subject to tax? Yes it is. Take advantage and save more for your future and avoid paying more taxes.
9. Evade Tax with Your Children as Excuse:
Saving on your children is wise. That’s not all. You can reduce deductible tax by including your expenses for your child care and alimony payments.
10. Save on Medical Expenses:
Some medical expenses are deducted from taxable amounts. Keep a track on what you spent on bandages, breast cancer treatment etc. They earn you some tax relief and you really want it.
11. Invest Smart:
what about a business? As an investor, you are fully in control of how and what you pay for your taxes. Business owners may decide to reinvest in the business rather than withdrawing profits as income. Reinvested profit is never taxed and it is all yours.
12. Save for Your Children’s College Education:
Many parents are not taking advantage of saving for their children’s college education. It is not only about preparing for the unpredictable future; you will evade paying taxes as well. College savings are not taxed. Get smart and kill two birds with one stone i.e. save for your kid’s future education as well as pay less tax.
13. Save on Mortgage:
You have a mortgage? Take it slow and pay it for as long as you are allowed: what you pay for your mortgage is tax deductible. Do not go for the option to clear it at once. Take your time to pay it and enjoy some tax relief for as long as it takes you to clear. Be it 10 years; the longer the better. you can use this mortgage calculator for knowing the amortisation schedule.
14. Give gifts to your Children More Often:
For every gift you give to someone, you will not be paying tax for that amount. How does it sound if those gifts go to your children? Each child can legally receive $ 13,000 from every parent. You can claim that you are splitting the gift package and each parent gives the same amount. That will be a cool $26,000 and it is not touchable by tax.
15. Losses are bad, but not when it comes to tax:
Your losses from the last fiscal year can be carried forward to the forthcoming year and be deducted from the gains of the current year. You will not be paying taxes for the amount equal to the loss you made in the last bad business year.
16. Go Green, Save Energy and Save Dollars:
The government is out to encourage the use of renewable energy. Make your home energy efficient and you will get credit for it. It all comes to you tax-free at the comfort of your home.
17. Transfer Some Assets to your Spouse or Child:
you belong to that high tax code thanks to your lots of assets. Slash some of them and give them to your spouse who is low in the tax code. You will lower your tax code and pay less for your taxes.
It is now all for you to decide which option works for you. Again, all the tips provided are legal. Be bold and ask for your right. It doesn’t take a genius to save when you can but if it does, count yourself as one.