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Reduce your tax bill... thoughtfully and over your lifetime
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Even if you don't think you owe taxes, FILE ANYWAY. You may be eligible for refundable tax credits, meaning Uncle Sam will reward you with a check for the effort!

Filing your return starts the clock ticking on the statute of limitations:
3 years for audits and 10 years for collections.

Smart ways to reduce taxes

  • Don't spend all the money you make this avoids the dreaded Sales Tax
  • Become a homeowner
  • Contribute to a deductible retirement plan
  • Contribute to a ROTH and the earnings will grow TAX FREE
  • Fund Flexible Spending Accounts for medical and dependent care expenses
  • Use 529s and Coverdell IRAs to save for education expenses
  • Gift to loved ones and charities you believe in
  • Don't collect Social Security prior to your Normal Retirement Age if you earned income exceeds $15,480 in 2014
  • Coordinate withdrawals from ROTHs and other qualified accounts
  • Rollover assets directly from a former employer's retirement plan rather than taking a lump sum distribution
  • Make sure you benefit from any and all tax credits available to you
  • Convert qualified plan assets to ROTHs in years where you benefit from lower tax brackets and/or market values are depressed
  • Fight property taxes
  • Asset location an advanced method for owning income-generating assets in qualified plans
  • Avoid non-qualified withdrawals from ROTHs, Traditional IRAs, annuities and employer-sponsored plans unless you meet an exception to the penalty tax
  • Use gifting and other strategies during your lifetime to reduce your taxable estate
Financial decisions should be mindful of the tax consequences, but not drive them. Buy a home because it is the place you want to live or it's a good investment... not merely for a tax deduction.

Here are some ways people trying to sell you stuff might encourage you to reduce taxes:
  • Annuities
  • Permanent Life Insurance (Whole Life, Variable Life, Universal Life)
There may be reasons why these products make sense, but don't buy them merely to reduce taxes.

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