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After visiting your tax preparer and seeing just how much tax you paid this year, you may find yourself asking: How can I pay less tax? Many taxpayers overlook the fact that not all income is treated the same when it comes to paying taxes. Did you know some income generates a higher tax liability than other income? Understanding the difference may save you thousands a year. Here are a few types of income with zero tax liability. ROTH withdrawals- ROTH must be at least 5 years

What is a Health Savings Account? An HSA is a personal pre tax savings account designed to help individuals pay for qualified medical expenses such as: Copays, Prescriptions, Dental care, Eyeglasses, Other healthcare costs. Tax Advantaged The account has a triple tax advantage, meaning contributions reduce your taxable income, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free, giving it a triple tax advantage. The only account in the

What is Tax Planning and why is it important? Tax planning is a tool to analyze and arrange financial activities to minimize tax liability and maximize tax efficiency. Tax Planning is essential for all taxpayers, regardless of income. Taxpayers who neglect tax planning often pay more tax than necessary. As a result, they have less leftover to save for goals. As the cost-of-living continues to climb, it is even more important to understand where your money is going. Tax Plann

Fifty percent of a taxpayer's benefits may be taxable if they are: Filing single, head of household or qualifying widow or widower with $25,000 to $34,000 income. Married filing separately and lived apart from their spouse for all of the year with $25,000 to $34,000 income. Married filing jointly with $32,000 to $44,000 income. Up to 85% of a taxpayer's benefits may be taxable if they are: Filing single, head of household or qualifying widow or widower with more than $34,000

If you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Capital Gain = (Sales Price - Closing Costs) - (Purchase Price + Repair/Maintenance + Closing Costs) Qualifying for the exclusion: Ownership and Use test: You must have owned and used your home as your main home for a period of at least two (2) years out of the five (5)

Need help with your small business taxes? Here is a list of common deductions.