10 Tax Breaks You Must Know To Save Money (U.S.)
The time period between January 1 and April 15 of each year in which individuals traditionally prepare the previous year’s financial statements and reports. In the United States, individuals must file their annual tax return by April 15 of the year following the reportable earnings. To reduces taxable income people refer to Tax credit or Tax breaks but most of the these Tax exemption are not really known among people.
To help reduce you taxable income, we at begin from here have listed for you 10 breaks that can really make a deference especially for families.
| 1. Child tax credit
It’s time for those kids to start pulling their weight around here! This credit can cut up to $1,000 off your tax bill, per child. Ka-ching! |
2. Earned income tax credit
Here’s another one that might actually force the government to pay you. The lower your income and the more kids you have, the higher your credit could be. |
3. Student loan interest
Up to $2,500 of student loan interest can be used to reduce your taxable income. Mama told you that education would pay off! |
4. IRA contributions
An IRA is a retirement account that works a lot like a 401(k), but you open it up yourself instead of getting it through your employer. There are some big tax breaks for contributing and you have until April 15 to make your 2014 contribution. |
5. Opening a SEP-IRA
This is another type of IRA, but this one is for the self-employed. You have until April 15 to open a SEP-IRA and contribute (and deduct) up to 25% of your net self-employment income. |
6. Saver’s credit
Speaking of saving for retirement, you may be able to get a double tax benefit for it. The saver’s credit can slash up to $2,000 off your tax bill just for putting money into a retirement account. |
7. Health savings account
A health savings account allows you to pay for medical expenses tax-free, and it can even be a pretty kick-ass retirement account. You have until April 15 to make a 2014 contribution. |
8. Adoption expenses
Up to $13,190 of adoption expenses can be used to reduce your tax bill. |
9. Moving expenses
If you moved because your job required it, or because you started a new job or business, you may be able to deduct your moving expenses. |
10. 401(k) contributions
Just like a 529 plan, this is about planning ahead. Any contributions you make now will be deductible next year, so if you can increase them even a little bit you will save on next year’s taxes. Contributing at least enough to get the full employer match is a great start. |
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