| Everyone wants to know how to lower their tax | | | | Keogh, SIMPLE, or SEP plan for saving more |
| liability. None of us want to pay more tax than | | | | tax-deductible dollars than a standard IRA. Talk to |
| we should, and most of us want to avoid paying | | | | a financial consultant about the benefits of these |
| all we can. There are complicated methods of tax | | | | plans. |
| avoidance given any particular tax situation, but | | | | Keep good records for your home and business. |
| such complexities really only apply to a minority | | | | Good, organized records will help you to track |
| of taxpayers. Most of us need some simple | | | | your personal and business expenditures to |
| advice on how to save paying tax, if we can. | | | | ensure that you get every deduction, exemption, |
| If you want to avoid paying more than you | | | | and tax credit to which you are legitimately |
| should have to, the simplest way is to pay your | | | | entitled. Hang on to these records for at least |
| taxes on time. Interest, penalties, and fines accrue | | | | three years and in the case of appreciating |
| starting on April 16. Filing a late return can actually | | | | assets, hang on to them much longer. Save all |
| cost you some deductions and tax credits. Certain | | | | your receipts and records of expenses to support |
| deductions, credits, and exemptions are not | | | | your deductions in case of investigation or audit |
| allowed when filing a late return. Being on time is | | | | by the Internal Revenue Service. |
| no joke; it can save you money and help avoid a | | | | If you have a part time business, run it as a |
| lot of hassles. | | | | professional endeavor. Keep track of all business |
| Use retirement plans to reduce your current | | | | related expenses and income. If your part time |
| taxes. Many retirement plans are pre-tax, so you | | | | business suffers a loss, that loss is deductible |
| do not pay tax on that money until it is | | | | from your income taxes. Be sure that you can |
| withdrawn. Most likely, you will withdraw that | | | | prove you had a profit motivation if your part |
| money in retirement, when you no longer have as | | | | time business suffers losses. The Internal |
| high or as steady an income as you do now. | | | | Revenue Service will not be happy if they expect |
| Under those circumstances, the impact to your | | | | you ran your part time business half-heartedly, |
| taxes will be greatly reduced upon withdrawing. | | | | simply to incur a loss. |
| Save money on your taxes now and consider a | | | | |