Are you absolutely sure you don’t pay more taxes than you need to?
One place to look might be: tax credits. 20 percent of U.S. tax-payers are eligible for the Earned Income Tax Credit each year, but don’t claim the credit! This can amount to over $6,000!
Another item to look at is: deductions. Why pay for things like healthcare and retirement savings out of pocket, when you can pay for them with untaxed dollars? Check out options that you have with your employer. Flexible Spending Accounts are available at many employers, and can turn healthcare or even childcare expenses into tax deductions! Retirement plans contributions not only provide tax deductions, they sometimes have matching employer contributions!
And lastly, don’t forget to check out tax-free growth. Depending upon your income, you can get this benefit from retirement plans. Regardless of your income, you can get this benefit from education savings plans.
Roth IRA accounts (for retirement) and 529 Plans (for education savings) are ways of making all growth on your investments tax-free. How much of a difference can that make to your long-term savings? A HUGE DIFFERENCE. Not sure if you qualify? Reach out to us.