20_ways _to _cut_tax_bill

20_ways _to _cut_tax_bill - Cut Your Income Tax Bill Page 1...

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Cut Your Income Tax Bill Page 1 of 4 Take 20 Steps Today to Cut Your Income Tax Bill Or Take Two Aspirin When You File Your Tax Return By Gene Dickison of More than Money with Jack Morrone, CPA and Laurie Siebert, CPA Frank Stettner, CPA Your income tax bill is probably the largest single bill you pay each year . And don’t even get me started on all the other taxes we pay. I’m trying to stay focused here. How are you going to pay less income tax 2005? And 2006? And 2007? The key is planning . Start now and you’ve got a real opportunity. Start next March and you’ll be writing another big, fat check to Uncle Sam. Here, in no particular order, are twelve ideas you might use to cut your income tax bill. (1) Consult with a Professional Tax Expert now . From February 1 st to April 15 th of every year, these folks are up to their necks in tax preparation . Now is the time to get their relaxed and rested attention on tax planning . CPAs and EAs (Enrolled Agents) are specifically trained to analyze your unique situation and identify areas of opportunity. A good tax advisor will guide you in the type and form of records you should keep to stay organized and provide the required evidence of every valid deduction you have coming. This information alone will save you on both taxes and tax return preparation fees for years to come. (2) Maximize your 401(k) contributions . It is mind boggling how many folks complain about their taxes and yet are contributing little or nothing to their 401(k) (or 403(b), TSA, SIMPLE IRA, etc.). Putting aside all of the other great reasons for using your 401(k), the simple tax facts are – put money in and cut your tax bill . As icing on the cake, your tax bill is lower every year thereafter as well. (3) Convert your credit . All loans are not equal in the eyes of the IRS . The interest on some loans (predominately real estate and particularly your residence) is tax deductible. Other loans (credit card, auto, etc.) offer no tax deduction. If you convert your auto loan to a loan against your residence, you will likely pay lower rates and create a tax deduction. Securities offered through Valley National Investments, Inc. Member NASD and SIPC 1605 Valley Center Parkway – Suite 160 – Bethlehem, PA 18017 www.MorethanMoneyOnline.com © 2005 Gene Dickison More than Money 800-383-8297 [email protected]
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This note was uploaded on 09/09/2011 for the course TAX 6845 taught by Professor Kelliher,c during the Fall '08 term at University of Central Florida.

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20_ways _to _cut_tax_bill - Cut Your Income Tax Bill Page 1...

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