Reducing Your Taxes With Three Basic Strategies

Tax Audit for Maximum Results

There are three ways to help minimize your taxes, and a Fontana certified public accountant (CPA) can help you do just this. Typically, the following steps are considered to be of great advantage come tax season: reduce your income, increase your deductions, and take advantage of tax credits.

The more income you make, the higher taxes are paid. This is when a 401(k) or traditional IRA can be of great help. Not only will that decrease the amount of taxes, it will also help plan for your future retirement. Keeping more of your money can be as simple as choosing the right Fontana CPA who understands state and federal tax codes and can help guide you in the right direction.

In addition, adjustments to your gross income can reduce your taxable income in order to lower the amount of taxes. College, alimony, and adoption-related expenses can also contribute to a decrease in taxes.

Tax Deduction Check List

Once you have reduced your taxable income, look into increasing your tax deductions. This means keeping record of all expenses in order to properly deduct from your taxes when the time comes. Health care, personal property taxes, mortgage interest, gifts to charity, job-related expenses, and tax preparation fees are just some of the deductions you may be able to take. Keeping a spreadsheet of all expenses throughout the year will help you stay organized.

The third method to reducing your taxes can be by taking advantage of tax credits, which include those for saving for retirement, college expenses, and adopting children. Taking college courses can be beneficial not only for your own growth, but to help reduce your taxes as well. Further information can be provided by a qualified CPA tax preparation specialist at GYL Decauwer, LLP.

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