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Your tax money is a valuable resource. So how can you save more of it when you need it?
Your tax money is a valuable resource. For many taxpayers, getting their return money is a joyful windfall. Most of the time, that extra benefit makes ends meet. That said, it’s not a big deal to treat yourself to something nice from time to time. How can you save more of your tax money for this year? Read on to find out!
Make the Most of Your 401(k) Fund
Depending on your current financial situation, this suggestion might not be possible. Regardless, you owe it to yourself to at least inquire about doing so. The maximum amount you can invest is $19,500, but workers who are 50 or older can contribute even more. For your consideration, that other total is $6,500.
Tap Into Your Health Savings Account
You could also leverage your Health Savings Account (HSA). If you are an unattached individual (single), you can contribute $3,600. Families, meanwhile, can contribute $7,200. Every contribution is a deductible item on your taxes. Unused money remains tax-free and can be withdrawn after age 65 without a compelling reason for doing so.
Write Off Valid Healthcare Costs
Healthcare costs could be a major cause of concern for you, your family, and your coworkers. That said, it is entirely possible to write off any reasonable healthcare costs that you incur. If it goes over 7.5% of your adjusted gross income, it is fair game. Even if you don’t have any applicable vision or dental insurance, you can still use them to your advantage.
Review Your Withholding Status
When you first started at the company where you work, HR probably asked you to fill out some relevant tax forms. Back then, your withholding status likely reflected your life circumstances—marriages, divorces, children, and buying a home all impact your new arrangements. When you don’t have much to withhold, you’re obligated to pay more taxes. By revising your status, you could increase the tax money that is factored into your paycheck.
Contact Your Employer about Additional Benefits
Supplemental benefits can also make a remarkable difference. When it comes to saving tax money, you’ll want to explore every avenue that you can. For example, request more information about commuter benefits. Commuting costs relating to mass transit, ridesharing, and qualified parking all count as optional discounts and rebate opportunities. Company payroll taxes also go down, which means both sides win.
trust the professionals at the Harding group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients.
Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning? We have the necessary expertise and years of proven results to help.
We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.