Tax Planning Tips to Save Money Every Year

tax planning

Tax season is upon us again, and millions of Americans are rushing to have their affairs in order so they can beat the deadline. That said, there are ways you can shrink your tax bill if you make use of some of the allowances that Uncle Sam has given you that you may not know about. Read on to find out what this year’s tax tips are.

Close out Worthless Stock

If you have some stock lying around that’s not making you a profit, speak to your broker so you can come up with a deal to have him or her buy it from you. You can then use the loss to take care of any gains, tax-wise

Combine Business with Pleasure

A great way of making sure that you’re not taxed to your ears is to squeeze in some holiday time during your next business trip. This could be in the form of two extra days of fun in the sun in Mexico on your way back from a London business meeting, or whatever floats your boat. This way, you can write off the holiday as a deduction, as long as you spent half the time away carrying out business-related matters.

Gambling Winnings Need to Be Reported

If you’re a Vegas veteran or like to hit up the casino at the mall every so often, you may want to think twice about not reporting your earnings. Money from gambling winnings is taxable, and should be reported. However, you should look at your gambling activity in its entirety so you can claim only have the winnings taxed and not the losses.

Look Into Fortifying Your Retirement Savings Account

The government looks kindly on individuals who put away money into their IRA’s and 401K’s. It does so by giving these individuals tax breaks that may not be available to ordinary savings and checking account holders. This is not only a great way to qualify for a tax break, but it is also a good way of saving money that will go into making sure you’re comfortable later on in life.

Job-Hunting Tax Deductions: Yes, You Read That Right

If you’ve been looking for a new or second, third of fourth, you can claim tax deductions on things like transportation costs, resume printing, on-the-road accommodation and more. The economy isn’t so good and the government is acknowledging this by giving job hunters a break.

Working From Home? This One’s For You

If you telecommute and use a room in your home as your office, you may want to consider claiming tax breaks on things such as office furniture. More and more people are choosing to work from home, and this kind of incentive exists to encourage even more people to make the telecommuting jump.

Energy-Related Tax Deductions

If you’ve jumped on the solar or wind energy bandwagon, we have good news for you; the government is providing you with up to 30 percent savings when it comes to the total cost of your solar panel or or any other form of renewal energy generator.

These tips can help you offset your tax bill, leaving you with extra money that you can use to invest, or save for a rainy day.