QLB Accounting is a local tax preparer office that can help you to get rid of the tax burden. It is a local accounting office that offers fast and friendly service at a very affordable rate. QLB understands what taxpayers want and therefore, in this article, we are going to tell you 5 things that you can do with your income tax check.
Increase the Number of Your Tax-free Income: You might be surprised to know that there are different types of income for which you don’t have to pay taxes and these are called tax-free income. Different strategies that you can utilize to increase your tax-free income are as follows:
You can invest your money in several municipal bonds.
You can contribute something to your health savings account.
Apply for employee benefits such as health insurance and many more to the employer.
Moreover, your children can play impactful roles in this scenario. Tax code in the U.S.A. offers plenty of benefits to the parents. You can save money for the education of your children. For example, you can create a college savings account and invest some of your income there in order to get rid of the burden of the tax. You don’t have to pay any sort of tax on earnings as long as your earning goes for the tuition of your children. Alimony payment is another tax-deductible option and therefore, you can go for this as well.
Never Miss The Benefit Of Tax Credits: Tax credit is applicable for moderate-income and low-income taxpayers. It is a great option to save your tax. You can purchase a hybrid car and get the benefits of a tax credit. Moreover, you can become energy efficient to save taxes. Yes, the federal government helps taxpayers so that they can make their houses energy efficient. The government offers credits through which they can buy new doors and windows and along with this, they can also install new insulation, cooling, and heating systems. Some alternative sources of energy such as solar panels are included in tax credits as well. So, don’t forget to make your house energy efficient as it can save your taxes. Some other tax credits are education tax credits and child care tax credits.
Start A New Business: If you want to become an entrepreneur, never step back as it will help you to save your taxes in the future. Yes, businessmen have more luxury when the matter is inextricably related to tax-saving; they can pay their taxes in whatever way they want. They have the option to keep more money for the company’s expenses and tax professionals can also help them to keep their internal revenue under control.
Keep The Mortgage As Long As You Can: Another tax-deductible option is mortgage interest payment and if you are a homeowner and want to get rid of the tax burden, you have to keep your mortgage as long as you can afford.
Engage in Some charity: Well, a charitable contribution is another beneficial tax-deductible option. An individual can get up to $13,000 through this and there is another method which is called ‘gift splitting’ that allows the parents to give their child up to $26,000 without paying any taxes.