10 Ways to Save You Money: Tax Season

Posted on Mar 4, 2014 in San Diego Lawyer | Comments Off on 10 Ways to Save You Money: Tax Season

Easy ways you could be saving money on your tax bill and around town this tax season.

1. Commuter Benefit: Employees can use pre-tax dollars from their paychecks to pay for certain commuting expenses including mass-transit passes and parking. Maximums are set at $250/month for parking and $130/month for mass-transit, assuming a 40% tax rate, setting aside the maximums could save you over $1800 annually.
2. Homeowners Insurance: You could possibly save 25% annually on premiums when you raise your deductible to $100 from $500
3. Time Car Buying Right: You can save $500-$2000 off the sticker price of a car by buying at the end of the day or month. Rainy days a good days to shop as well since there are less people on the lot and dealers still want to meet their quota.
4. Spousal IRA Contribution: Save $800-$1500 annually if you contribute to your IRA for a non-working spouse. (Assuming maximum contribution of $5,500, $6,500 for those age 50+, with a 28% tax rate.)
5. Flexible Spending: The two most common FSA are for health and dependent care, both allow you to set aside pre-tax dollars for qualified expenses. Check with your employer to see what is availa
ble to you.
6. Get a Health Savings Account:  Similar to Health FSAs, HSAs allow higher maximum contributions and there is no limit to how much you can roll over at the year’s end.
7. Shop Around for Insurance Discounts: Check for cheaper, comparable premiums and see if your current carrier will match the price. Don’t forget to let your insurance carrier know about changes, such as adult children no longer needing to be covered on your policy, or school age children getting good grades, both can
help lower your premiums.
8. Appeal a Property Assessment: According to the National Taxpayers Union 30-60% of properties are assessed higher than their current value and only 5% of taxpayers appeal assessments. Many people still pay taxes on out of date real estate values.
9. Gift Securities to Charity: By gifting stock that has increased in value instead of selling it, the donor can avoid paying capitol-gains tax. For example, if someone bought 500 shares of stock at $10 a share and now its $50, they wouldn’t have to pay capitol-gains taxes on the $20,000 profit.
10. Lower 401(k) Costs: Employer-sponsored 401(k) plans come with a lot of investment choices. Make sure you request a diversified group of low-cost index fund and ETFs to get the most out of your investment.
The actual savings from these suggestions and your qualification for them depend on your individual tax and employee situation. This information does not qualify as expert advise.
Please call our office to get connected with a tax expert today 858-549-8600.

 

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