As a responsible citizen, it’s your duty to pay your taxes. However, the taxes you pay are not usually fixed, depending on how much you make. Rather, your taxes will always be obtained from your “taxable income,” which can be reduced in one way or another and thereby lowering your tax bill quite significantly. Here are a few ways to lower your tax bill.

1. Contribute to your IRA

Financial advisors will often ask you to make regular contributions to your individual retirement account. Not only are you saving for your retirement this way, but the money you stash there basically becomes a write-off and will not require to be itemized. It’s important to note, however, that these write-offs are tax-deferred and not exempt. So you will have to pay these taxes at one point.

2. Use your spending power

Another way to reduce your gross income and consequently reduce your tax bill is by spending money on flexible spending plans. What happens here is that when you have a flexible spending plan, your employer will deduct a certain amount every month, which is tax-free. These funds are placed into an account that will then pay for items like health insurance, medical expenses, dependent care, and so forth (things that you would have paid for anyway). These dollars are deducted from your earnings, which can reduce your tax bill a great deal.

3. Be charitable

Giving to charity organizations is another good way to reduce your tax bill. Here you don’t always have to write a check to your favorite cause. You can decide to be more proactive and buy them what they need. This can be in the form of books, clothes, toys, machinery, household items, and so forth. The cost of these items is deductible and can reduce your tax bill. However, if you are volunteering your time only, it is not deductible; but if you are representing a charity at an event or something similar, it can count.

4. Track your medical expenses

Medical expenses can be quite unpredictable, depending on the illness. If you have spent quite a bit on your medical expenses, you might be able to get some deductions for what you spent. Essentially, you can get a deduction for medical expenses that are more than 7.5% of the adjusted gross income for that year. For instance, if you have a gross income of $40,000, medical expenses accrued past $3,000 will be deducted. Therefore keeping track of your medical expenses can go a long way in reducing the tax bill 

While the tax season can be stressful and confusing, it doesn’t have to be that way for you. Mostly, if you have the right team working for you, it will all be a breeze. An income tax calculator such as taxfyle can assist in helping you structure your finances and get to know exactly how much you owe the federal government.

How to Plan for Your Financial Future as a Content Marketer

推荐阅读：
wordpress自动显示图片exif信息插件-Display Exif　 为wordpress设置一个简单的后台登陆地址　 免插件自动生成wordpress文章二维码图片　 wordpress主题更新style.css样式表文件后不生效的解决方法　 如何在WordPress文章末尾自动添加作者简介　 如何让WordPress分类归档排除子分类文章　 如何让WordPress显示即将发布的文章列表　 wordpress头像缓存插件：nix-gravatar-cache 修改版　 如何获取WordPress当前分类文章的所有标签　 存在的理由作文100字