1. Contribute more to a retirement
account
If you put money into a traditional IRA or 401(k) plan, you'll
benefit in two ways. First, you'll get the financial security that comes with
having savings available in retirement, and the earlier in life you start
contributing, the more opportunity you'll give your money to grow. But you'll
also benefit from a tax perspective, because the amount you contribute will go
in pre-tax. What this means is that if you make $50,000 a year but put $5,000
into your 401(k), you'll only pay taxes on $45,000 of income. Talk about a
win-win!
2. Donate items you no longer
use
Is your basement or hall closet overflowing with clothing, tools,
and gadgets you don't need? If you donate those items to a registered charity,
you'll get to claim a deduction on your taxes. All you need to do is obtain an
itemized receipt of what you give away to verify your donation, and you're all
set.
Taken from the Motley Fool.
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