Different Ways to Reduce the Taxes in this Year, by Ed Lloyd & Associates PLLC

Paying income taxes to the US government is not easy for everyone. It takes a lot of time and planning to pay the tax to the government.

Here are some of the ways that can make you save your tax:

• Health Savings Account

If you have a high deductible medical plan, then it is wise to contribute to the health savings plan, says Ed Lloyd & Associates PLLC.

• A vacation with a Business Trip

You can combine your this year’s vacation with one of your business strips. This is one of the ways that can make you save your taxes in the year. It can also reduce your vacation costs by deducting the overall costs.

• Home office Deduction

According to Ed Lloyd & Associates PLLC,  you should always take the home office deduction if you work yourself or have any side business. You can deduct the part of your home from your total income tax that is being used in the office space. It comes under the utility fees for your home and office.

• Spending Power

If you want to save income taxes, them sometimes it is necessary to spend your money somewhere else in order to save it. The tax is not levied on the medical expenses or any such area. Flexible spending power is the pre-tax plan that allow the person to pay the bills any kind of tax on it.

• Bundle your Contributions

It is important for the taxpayer to bundle his or her contributions. This way they can put what is essentially three years worth of deductions into a single year.

• Charitable Deductions

The deductions that are paid with cash or cheque or donations are all under charitable deductions, clarifies Ed Lloyd & Associates PLLC.

• Military Reserves

If you are in the military reserves or if you are a national guard  or if you have traveled more than 150 miles, then you can simply deduct all the related expenses and the lodging. Even the mileage costs are deducted easily.

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