Financial management tips offer ideal methods toward decreasing your tax obligations. Whether you are a full-time employee or you are a small business owner, you can apply several highly recommended strategies to reduce your tax burden. In 2015, a variety of methods may be used to help you pay fewer taxes in Laguna Beach or anywhere:
- Tax-deferred investments
- Buy a house
- Take colleges courses
Contribute to Tax-Deferred Investment Vehicles
If your employer offers a 401(K), your contributions are generally tax deductible. If you own a small business, you can reduce your tax bill with a variety of tax-deferred plans such as a SEP IRA or a Solo 401(K). However, the deductions will vary based on your tax bracket, your age and the type of investment vehicle that you select.
Buy a House
Homeownership offers greater tax advantages than renting. As a homeowner, you can deduct the portion of your payment that is allocated for mortgage interest. Additionally, you can deduct real estate taxes as well. As of June, Laguna Beach residents can still purchase a home in 2015 to qualify for significant tax deductions.
Organize Your Financial Records
Maintaining solid financial records is vital toward maximizing your tax deductions. Keeping receipts for charitable contributions, mortgage interest payments and for certain work-related expenses could be instrumental toward reducing your tax bill. With the purchase of a file box in the month of June, you can organize and store your financial records for tax filings.
Maximize Your Educational Benefits in 2015
Educational credits may be used to offset the amount of taxes that you owe. Tax credits such as the American Opportunity Credit or the Lifetime Learning Credit could substantially impact the amount of your tax refund.
Interest paid on student loans may be deducted against your income taxes too. Whether you obtained a student loan for yourself or for another family member, you may be eligible to deduct the annual interest expenses for the student loan.
Consult a Tax Professional
Meeting with a Laguna Beach tax professional could enhance your tax refund. Tax specialists are trained to maximize their client’s tax deductions. It is also a prudent idea in 2015 to have a tax professional review copies of your recent tax filings for additional savings.
Are you ready to start saving money? Visit the website of Bart Zandbergen CFP®, or call (949) 297-8318.