1. Contribute you your IRA
You can make IRA contributions all the way up to the tax deadline and it will be included as part of your tax refund. The IRS says, “Amounts in your traditional IRA, including earnings, generally are not taxed until distributed to you.” So contribute as much as possible to your IRA first before filing your tax returns every year.
2. Contribute to charity
Many people know charitable donations are tax deductible. But did you know these donations also can include items and mileage? So you can assess the value of the items and total up the amount of mileage you chalked up and add that to your tax deduction claims.
3. Make an education deduction
If you or an immediate family member is pursuing a course of study, most education costs can be deducted. If the area of your study is related to your business, you may even qualify to make a business deduction in your business income tax.
4. Make energy-saving expenses
If you renovate your home to make it more eco-friendly or buy energy saving equipment such as solar panels or windmills, you can claim deductions on these kinds of expenses. You can earn credits of up to $7500 for electric vehicles, and up to 30% of the purchase price of wind or solar products.
5. Health Savings Accounts
If you are healthy, you should consider buying catastrophe health insurance. This is because such insurance may save you hundreds of dollars in insurance premiums per month and deposited into your HSA. And if you do not end up using the funds in the account, it accumulates as the years pass. Furthermore, you can also write-off the contribution and will not be taxed on any gains you get through investing the money.
6. Read the IRS FAQ
You will be surprised how much money-saving information you can get through reading through the FAQs. Alternatively, you can check out online tax services or some accounting websites that can give you updated information on tax matters.
7. When facing an audit
If you have been given an audit notice by the IRS, do not panic. If you do not understand any of the tax issues brought up, you can contact a tax attorney who can represent you in your tax case. This can potentially save you lots of money also.