Beginner’s Guide to Paying Less in Taxes

Photo by The New York Public Library on Unsplash

Of the two things that are certain in life, death and taxes, the overall mindset seems to be that taxes are the more fearsome.

We all clench our teeth come April. No matter how good a year we had, filing taxes is always there at the finish line waiting for us.

While we can’t make the process any less daunting than it already is, here are some tips on how to do your future self a favor and lower what you pay in taxes.

1. Deductions and Credits

I’ve said it before and I’ll say it again: do your research. Knowing which of your expenses are tax-deductible, and which tax credits you are eligible to receive is a huge boon in the long run. Here are some deductions and credits to keep in mind:

Medical Bills: As long as you spend more than 10% of your adjusted gross income on medical expenses, it could be possible for you to write them off so long as you itemize your deductions.

Charitable Donations: turns out your goodwill is tax-deductible.

Business Deductions: the cost of your home office, supplies, and travel expenses can all qualify as freelance deductions.

There are many types of credits out there such as family, homeowner, and education. For a full list, you can visit the IRS’ website here…