Let’s face it – nobody likes paying income tax. If only there was a way to reduce the amount you were paying each year. The good news is that there is! Below, we provide you with a few handy tips on how income tax can be saved without very much effort required on your part.
Start A Business
Business owners have a lot more control over how they pay tax. For example, you may choose to contribute money to your own retirement plan, as opposed to using it to pay tax. There are also many expenses that you can use to reduce the amount that you pay in tax. An experienced accountant can help the owners of small businesses to make the most of these benefits.
Declare Your Kids
If you have children or dependents living with you, the child tax credit could help you to save on income tax. Unless you are considered to be a ‘high earner’, in which case the credit does not apply, you could save up to $2.000 for each child under the age of 17.
Did you know that if you open an education savings account and make sure that the money saved actually goes towards paying for tuition, you won’t have to pay a cent in tax as your investment grows?
Earned Income Tax Credit
There is a chance that you may be able to save on tax with an earned income tax credit. If you’re currently earning less than $50,000 per year, you may qualify for the benefit and could save up to $6.000! Speak to your Accountant to find out more.
Need help to save as much as possible on income tax? Call on the expert accountants and individual income tax preparation specialists at Georgen Scarborough today!