How to Cut Taxes

We all hate paying taxes, but there are ways you can cut down on your taxes. Here are a few tips to cut your taxes.

Difficulty: Moderate

Instructions

1. Fund your retirement account. Income on IRA and 401K accounts are not taxed. A lot of employers will also pay into your 401K account. This is a great way to invest money.

2. If you are in a higher tax bracket, use tax free money market funds and tax free bonds. Try to use the larger fund companies. Tax free money market funds have a lower yield and do not provide as many options as taxable market funds.

3. Make your capital gains long term (more than one year). These are usually taxed at a lower rate.

4. Hire a tax accountant to help you file your taxes. A tax accountant should be able to help you pay as little taxes as possible. Make sure you find one that is experienced and can help you with your individual tax needs.

Tips & Warnings

• Remember, funding your retirement account is a great way to cut your taxes. Your income is taxed after the payment for your 401K is deducted from your earnings.

Resources

• How to Know Where to Buy Stocks Online
• How to Find A Discount Stock Brokerage
• How to Succeed at Buying Stocks

[FrazzledNanny]

on 6/16/2009 Great tips for cutting taxes. I think we will reevaluate our 401K. 5*

[sonni57]

on 5/13/2009 We can all use a tax cut thanks for the helpful article.