A 401(k) or 403(b) is an employer-sponsored retirement plan that allows you to contribute part of your income before taxes, which lowers your taxable income and reduces the amount you...
Tax-exempt bonds provide investors with income that is either partially or completely free from certain taxes, making them an attractive option for people looking to reduce their overall tax liability...
A 529 Plan is a special savings account for education. You put money in, and it grows tax-free. When your child (or you) uses it for college, university, or even...
Medical tax benefits can also help lower your tax burden. If you have a high-deductible health plan, a Health Savings Account (HSA) allows you to contribute pre-tax dollars, grow the...
A Backdoor Roth IRA is a strategy for individuals whose income exceeds the IRS limits for direct Roth IRA contributions. For 2025, if your modified adjusted gross income (MAGI) exceeds...
The Mega Backdoor Roth IRA is an advanced strategy that is available to individuals with access to 401(k) plans that allow after-tax contributions and in-service withdrawals or conversions. This strategy...
Donating to qualified charities can provide a tax deduction. You may also consider “bunching” several years’ worth of donations into a single year to exceed the standard deduction threshold, or...
Tax-loss harvesting is where you sell investments that have dropped in value to intentionally realize a capital loss, which you can use to offset capital gains from other investments and...
The Foreign Tax Credit is a tax benefit that helps you avoid being taxed twice on the same income. If you earn money in another country—either by working there or...
Starting a side business is a smart way to earn extra money and reduce your taxes at the same time. When you run a business, even part-time, many of the...
Hold Investments Long-Term: Assets held for more than 12 months qualify for lower long-term capital gains tax rates, which are significantly lower than short-term gains taxed at ordinary income rates.
You already know that some deductions have limitations. The same is true of tax credits, meaning you may need help to use them fully in the current year. However, you...
If your spouse or children can contribute to your business, put them on the payroll. Kids can work tax-free if their income is below the IRS threshold. The Tax...
Small businesses can deduct the cost of certain assets over time through depreciation and amortization. This includes tangible assets like equipment, machinery, and furniture, as well as intangible assets like...
Small businesses can deduct expenses related to business travel, including transportation, lodging, and meals. However, it’s important to keep accurate records and adhere to IRS guidelines regarding allowable deductions for...
Choosing Married Filing Separately can be a strategic tax move in certain situations, especially when one spouse has substantial medical expenses, miscellaneous deductions tied to adjusted gross income, or student...