It’s the best time of the year to file taxes. Tax day is fast approaching, so I’m going to give you some advice on how to reduce your taxes and make them as low as possible.

 

If you haven’t already filed your taxes, you’ve got until April 15 to do so.

 

Here’s what you can do to make sure you pay the least amount of taxes, and have your refund speedily deposited in your bank account.

 

  1. Get in the habit of making contributions to your health care plan or any other tax-deductible plan, such as a retirement account.

 

Contributions are a great way to help you save money for a future goal and take advantage of tax-saving opportunities. They help you plan for life’s expenses and may make a big difference in your tax savings. Your health insurance company or investment advisor can tell you how to make the best contribution.

 

  1. Do you pay federal and state taxes on your 401(k) plan, and if so, how much?

 

If you have a 401(k), consider moving it into an IRA instead. You can change the IRA and 401(k) types by visiting your investment company’s Web site, your 401(k) plan provider’s Web site or a tax professional.

 

  1. If you’re single, do you have to file a tax return for 2014?

 

You don’t have to file one, but be careful. You may run the risk of a big tax bill, depending on what you earned.

 

  1. Do you have a home mortgage? If so, calculate and reduce your interest on your mortgage by the amount of interest you can deduct on your tax return. It’s likely your monthly payment is going to decrease.

 

  1. If you have any student loans, calculate and reduce the interest on them by the amount you can deduct on your taxes. Again, it’s likely you will see a drop in your monthly payment.

 

  1. If you have a personal line of credit, review the interest you’re paying on it. By making payments through a credit card, you could reduce your interest expenses.

 

  1. Do you own any stocks, bonds or mutual funds? Calculate and reduce any long-term capital gains you paid by the amount you can deduct on your taxes. It’s likely your total tax bill will drop.

 

  1. Do you have any other investments, such as life insurance policies, IRAs, annuities, other retirement savings accounts and individual retirement accounts? If so, review the value of those investments and see if you can calculate and reduce your taxes by the amount you can deduct.

 

  1. When was the last time you had an eye exam? Get a routine eye exam and have your glasses checked to make sure they are working properly and if not, purchase new ones.

 

  1. Do you have health insurance? Do you know how much you can deduct from your taxes for deducting it? Be sure to keep track of the cost of your insurance and deduct it from your taxes.

 

10 Simple Ways to Protect Your Family

 

  1. Do you have a credit card with a non-interest financing offer? If so, go over the total interest charges you’re paying. Be sure you can subtract them from your taxes and you should see a major decrease in your monthly costs.

 

  1. If you do have a credit card, do you really need it? Could you use the cash you have in your wallet? Can you borrow the money from your family or friends to pay for whatever you need to pay for? Could you buy a cell phone and put a limit on the amount of minutes you use each month and use up the balance of your phone and pay for the rest? Could you use a loan for the car you need to drive to work and put a limit on how much you borrow and be able to pay it back within a set amount of time?

 

  1. Do you really need the cell phone you have? You may be paying for cell phone calls that you don’t need and you may be paying more than you need to for it. Could you switch to a free phone from T-Mobile or another phone carrier and make do with that for now?

 

  1. Do you really need to get a new car? Could you save up for a car and then get a cheaper car to drive to work? Could you borrow a car from a friend or family member if you do not have access to one or are uncomfortable taking out a loan and then pay them back?

 

  1. Are you really living above your means? You may think you can handle the extra spending now, but you won’t be able to later.

 

  1. Do you really need the gas you are driving? How far is your office from your home? Could you walk to work or bike or ride a bus or train and then drive your car to work or take the bus home?

 

  1. Are you really living outside your means? Could you borrow some money and move in with a friend or roommate for a while? Could you get a job so that you can start saving up money?

 

  1. Would your family support you if you had to give up your current living situation?

 

  1. How many people do you live with? Do you live in an apartment or house where you are the only one who works or attend school?

 

  1. Do you work? If you are working and paying for your living expenses and making a decent living then it’s time to start setting aside a portion of what you make to save.

 

  1. Do you like to travel? If you are paying for trips or trips that you don’t need, could you travel less? Could you cut down on that vacation and stay at home more?

 

  1. If you aren’t currently saving money, do you plan on saving money or would it be a waste of time? Do you plan on putting your money to work right away?

 

  1. Do you feel stressed about money? You are probably trying to figure out the best way to save money. In this day and age we live in, financial stress is much easier than in the past. What stress are you feeling? Is it just for the cost of gas? Or maybe it’s for your mortgage? Is it having to buy groceries? What about health insurance? Are you making the money you need to pay for the basics? Or is it to buy things that you enjoy like you do now?

 

  1. What could you do with more money? Could you afford that big ticket item you want?

 

  1. What could you save for instead? A down payment on a home? Maybe it would be a vacation in the future? Could you make a monthly contribution to a retirement plan at work?

 

  1. Could you get a better job? What if you found a better job? What if you saved $50 or $100 a month by getting a better job?

 

  1. What could you do to earn more money? What if you tried to start a business?

 

  1. Could you take on more debt? How much debt are you in now? How much debt would you like to be in? How about in three years from now? What would you do if you had more debt? What if you had to make some sacrifices? Would you cut back on that big ticket item you wanted?

 

  1. Are you happy with your home or would you rather live somewhere else? Are you happy with your place or would you like to own your own home?

 

  1. Do you think a lot about your future? What about your children?

 

  1. What would it take to live a financially free lifestyle? Where would you live? What about buying a home?

 

  1. Do you think you could get by with less? How about buying one less thing? Could you reduce your entertainment budget by a certain amount each month?

 

  1. What would you do to better yourself? How can you develop yourself? Would you like to learn a new skill?

 

  1. Could you start small and grow from there? How about cutting back a little more each month? Would you like to save more each month?

 

  1. What is your purpose in life?

 

  1. What is your definition of wealth?

 

  1. What would happen if you did nothing about the money? What if you didn’t worry about saving? How much would you have after 30 years?

 

  1. What is your financial goal for the next five years? For the next 10 years? For the next 20 years? For the next 30 years?

 

For more details about how to minimize the amount of your tax debt, call (888)489-4889 for a free consultation today.

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