- Business Use of Personal Automobile – Do you use your personal car for business? Start keeping track of every time you drive your personal car for business – it may meet the requirements as a tax deduction! In 2016, the standard tax deduction is $0.54/mile and many clients are saving $100s of dollars.
- Health Savings Account – If you have a high deductible health plan (HDHP), you can setup a health savings account (HSA) and contribute up to $3,350 for self-coverage plans and up to $6,650 for family plans. This amount will lower your adjusted gross income (AGI) and in return, lower your tax liability!
- Deferred Tax Retirement Contributions – Sign up and contribute into a deferred tax retirement plan. The contribution amount delays the earned income from being taxed until the year distributions are withdrawn.
- Hire Your Child – Let your children help with small task and pay them through the business. This will help lower the business’ yearly taxed income. Please consider all child labor laws.
- At Home Office – Rather than renting or buying an office space, do you have a dedicated room in your home you use for business? If you meet certain qualifications, you can use this space as a tax deduction and save money!
Not sure if you meet the requirements for these tax deductions? Not a problem, contact us for a FREE consultation.