The number of times you have put off doing something because “now is not a good time” would shock you. There is never a good time to start a business, get married, buy a house, have a baby, start exercising, or save for the future.
It is just as the old adage implores, “there is never a right time for anything.” The same is true for saving money through most major life events. With the right tax advice and counseling from a tax resolution lawyer, the time to start saving money on your taxes is today. Companies like U.S. Tax Shield can help. At U.S. Tax Shield, our team of tax resolution lawyers will help you settle your IRS debt.
Life is full of ups, downs and hiccups. Here are some tax-saving tips for some of life’s big transitions.
Start deducting your tuition today. You may even be eligible to receive education tax credits and deductions. If you have paid for qualified education expenses throughout the year for yourself, your spouse or your child, it is tax deductible.
The American Opportunity Tax Credit is a tax credit for eligible undergraduate expenses such as tuition, books and even supplies.
Congratulations! You graduated from college and you landed a job. It is important to understand what tax-free perks your company offers its employees. Such benefits may include tuition assistance and medical savings accounts.
If you are married and filing your taxes separately, you may want to rethink that. Filing jointly helps you receive further deductions and tax credits, and saves you big money later in life.
Buying a Home
Almost every dime you spend on real estate is tax deductible. Buying your first home allows you to save on your federal income taxes. Through mortgage interest deduction, you can save on the interest portion of your mortgage each month. So in the first month after purchasing a home, a large part of your payment is tax deductible.
Additionally, real estate tax deduction, home improvements, and upgrading your appliances are all actions that will help save you money and earn you potential tax credits.
If you are looking for additional tax credits, you may be able to save $1,000 with the child tax credit. You are able to claim any dependent that is under 17. Do you pay for babysitters, preschool, or daycare? Keep your childcare receipts. Expenses like these are eligible for tax credits.
Start investing in your 401k or other qualified retirement account immediately, because it is the contributions early on that are more valuable than the larger contributions down the road.
In addition to 401k contributions, inquire with your employer about adjusting your withholding. Taking this measure could help you reduce your taxes at the end of tax season.
If you have questions about tax-saving solutions, or if you owe the IRS back taxes, contact a tax resolution specialist. At U.S. Tax Shield, our team of qualified tax attorneys will help you resolve your IRS debt by designing a payment plan that best suits your individual circumstances. Please call U.S. Tax Shield today with questions.