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End Of Year Income Tax Saving Tips

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End Of Year Income Tax Saving Tips

2014-12-15

Hello Sophisticated Spenders!

We only have 17 days left in 2014.  This is has been a pretty decent year for me so far.  Today I’d like to share with you a few of that things that I’ve done to make sure I will not be paying Uncle Sam too much of my hard earned dough.

Last year my effective tax rate was somewhere in the 10% neighborhood and I think that it’s really important that my readers spend their money on smart things-things that will help reduce your AGI (Adjusted Gross Income).

Here are a few things to get you started and you can still do these before Dec 31st:

1: Donate!  Now is the perfect time to get rid of clutter and old stuff.  I know that I have been buying lots of new stuff this holiday season so it’s been out with the old and in with the new.  Lots of charities have drop boxes all over most cities.  You just dump your stuff in there and they send you a blank receipt.  And I don’t believe there is a limit to the number of money you can claim here!

2: Start a side hustle:  I have this blog as a business, I am also a Mary Kay consultant and an Herbalife distributor (Lose weight now! Ask me how).  I am an independent contractor for both of these businesses so I did not have to go through all of the paperwork of setting up a corporation or anything complicated like that.  And there are SO many things you can write off!  Just make sure you don’t go crazy here tho!

3:  Contribute to your retirement accounts:  Saving for your retirement has tax benefits.  Just make sure you know the income restrictions and contribution limits for the year.

4:  Contribute to your company’s Health Savings Account:  A lot of companies offer tax free reimbursement of your medical expenses.  You pick an amount for the year and you spend that tax free money throughout the year.  You should at least put in around $100 a year because a lot of people don’t know that you get reimbursed for miles driven to and from the doctor or pharmacy!

5:  Rental Real Estate:  Ok, maybe you can’t close on a property before the end of the year, but you can start looking!  Renal real estate is awesome because of depreciation.  This is a phantom expense that you get to claim against the rent you collect for 26 years!

Does anyone else have any end of the year tax saving tips???

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