Turning Taxation into Relaxation

From Idaho to the East Coast, one thing that working Americans cannot avoid is paying taxes. Paying taxes can be a painful or stressful process. But it doesn’t have to be as bad as everyone might think. Meting with a financial advisor can be very beneficial in saving some money that individuals normally put towards taxes. 

One way to save money on a tax bill is to utilize employee benefits. Whether you are in Idaho or the Southwest, there are employers that actually want to help lower their employees tax bills. Employees are allowed to put money their employer had originally planned on spending but didn’t towards medical bills. Using this money eliminates the hassle of income and Social Security taxes. This can save someone 20 percent or more.

Retirement 

Any financial advisor in Idaho or elsewhere would strongly suggest having a retirement savings account. Retirement is something many individuals want to see in their future, so being cautious about their retirement savings can be very beneficial. 

An article in “US News” states, “Your contributions to a qualified 401(k) may lower your tax bill and help you build financial security. You can contribute to up to $17,500 to your 401(k) (or $23,000 if you are age 50 or older by the end of the year). Money contributed to the plan is not included in your taxable income.” 

Claiming retirement saver’s credit is also a possibility for individuals contributing to a 401 (k) plan. This lowers tax liability while increasing an individual’s long-anticipated refund check. 

Thinking of Others 

Financial advisor will tell individuals that a simple way to decrease tax liability that has personal and community benefits is donating to charity. An individual can earn tax deductions by donating items you no longer need or use. 

Using these tips is near effortless and has the potential to be extremely beneficial. 

Jordan Lee is a finance writer reporter for Fusion 360, a Content Marketing Agency. Information provided by Sanctuary Wealth Management.