{"id":1143,"date":"2018-07-19T18:50:00","date_gmt":"2018-07-19T18:50:00","guid":{"rendered":"https:\/\/upgifs.com\/blog\/?p=1143"},"modified":"2020-01-02T17:08:40","modified_gmt":"2020-01-02T17:08:40","slug":"4-ingenious-ways-to-save-money-on-your-taxes-every-year","status":"publish","type":"post","link":"https:\/\/upgifs.com\/blog\/1143\/4-ingenious-ways-to-save-money-on-your-taxes-every-year\/","title":{"rendered":"4 Ingenious Ways to Save Money On Your Taxes Every Year"},"content":{"rendered":"<p>Of all the undesirable seasons of the year, tax season is the worst. Filing and <a title=\"8 Things You Need to Know About Not Paying Taxes\" href=\"https:\/\/upgifs.com\/blog\/1118\/8-things-you-need-to-know-about-not-paying-taxes\/\" target=\"_blank\" rel=\"noreferrer noopener\">paying taxes<\/a> is the most tedious, expensive chore. But adulting requires it get done.<\/p>\n<p>Each year millions of people pay more money in taxes than they should. Blame it on inexperience or call it lack of tax-savvy. Whatever the case, it does not have to be this way.<\/p>\n<p>There are ways to save yourself a few extra dollars each tax season. Here are 4 ingenious tips on how to pay less taxes.<\/p>\n<h2>1. How to Pay Less Taxes: Earned Income Tax Credit.<\/h2>\n<p>When you file your tax return, claim the earned income tax credit. EITC is a tax benefit designed for working-class people with <a title=\"What is EITC, Earned Income Tax Credit?\" href=\"https:\/\/www.irs.gov\/credits-deductions\/individuals\/earned-income-tax-credit\/eitc-earned-income-tax-credit-questions-and-answers#What_is_EITC\" target=\"_blank\" rel=\"noreferrer noopener\">low to moderate income<\/a>.<\/p>\n<p>Every year thousands of people with children who earn less than $50K a year overlook this credit. Earned Income Tax Credit can save taxpayers as much as $6000 if claimed. Those filing must meet a few basic requirements:<\/p>\n<ul>\n<li>All parties listed on the EIC Schedule must have a valid social security number issued before the date of the return<\/li>\n<li>Must have income earned from an employer or your own business<\/li>\n<li>Legal citizenship<\/li>\n<li>Have a qualifying child or be between ages 25-65.<\/li>\n<\/ul>\n<p>Check to see if you qualify for EITC and claim the benefit.<\/p>\n<h2>2. Take a Few College Courses<\/h2>\n<p>If you&#8217;ve been thinking of going back to school to finish up that degree, doing so could help you pay less tax.<\/p>\n<p>The Lifetime Learning Credit is one of six education credits taxpayers can deduct on their taxes. Get tax credit for <a title=\"6 Education-Related Tax Credits &amp; Deductions for College Tuition &amp; Expenses\" href=\"https:\/\/www.moneycrashers.com\/education-tax-deductions-credits-college\/\" target=\"_blank\" rel=\"noreferrer noopener\">tuition, books, fees, and supplies<\/a> from colleges and universities.<\/p>\n<p>The LLC offers a $2000 maximum benefit.<\/p>\n<h2>3. Buy a House<\/h2>\n<p><a title=\"The Ultimate Guide on How to Buy a House Out of State\" href=\"https:\/\/upgifs.com\/blog\/884\/the-ultimate-guide-on-how-to-buy-a-house-out-of-state\/\" target=\"_blank\" rel=\"noreferrer noopener\">Buying a house<\/a> is the smartest investment any adult can make. Taking out a mortgage on a home comes with potential tax benefits.<\/p>\n<p>A large number of homeowners don&#8217;t know that mortgage interest is tax deductible. So are property taxes. For people in a higher tax bracket who can&#8217;t pay off their mortgage right away, the tax benefit is better. For example, if you&#8217;re in the 35% tax bracket and your mortgage interest is $12K, you could <a title=\"Calculating the Mortgage Interest Tax Deduction\" href=\"https:\/\/www.investopedia.com\/articles\/mortgages-real-estate\/11\/calculate-the-mortgage-interest-math.asp\" target=\"_blank\" rel=\"noreferrer noopener\">save up to $4200<\/a>.<\/p>\n<p>So go ahead, buy that house.<\/p>\n<h2>4. Monetary Contributions<\/h2>\n<p>Give and it will come back to you&#8211;charitable donations that is. Monetary donations or funds given as charity are tax deductible. You can claim any contributions you give in the form of cash or property as a deduction. All you need to do itemize them on your tax return.<\/p>\n<p>Qualifying Organizations:<\/p>\n<ul>\n<li>Religious organization &#8211; a church, a mosque, or synagogue<\/li>\n<li>A community trust fund<\/li>\n<li>Veteran&#8217;s organization or trust<\/li>\n<li>Civil Rights Defense funds<\/li>\n<\/ul>\n<p>Save all your receipts, including pay stubs. Some companies allow employees to take part in charitable giving programs. These donations auto-deduct from your paycheck. Hold on to those so you can pay less tax during tax season.<\/p>\n<h2>A Final Word<\/h2>\n<p>These tips are not exhaustive but they do offer great insight into how to pay less taxes. Using them should make getting through tax season easier for you. You&#8217;ll also know how to maximize your deductions and avoid paying more taxes every year.<\/p>\n<p>Read <a href=\"https:\/\/upgifs.com\/blog\/\" target=\"_blank\" rel=\"noreferrer noopener\">more of our articles<\/a> for comprehensive ways to survive paying taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Filing and paying taxes is extremely tedious and for money, it&#8217;s a giant money-draining affair. But it doesn&#8217;t have to be this way. Click here to learn how to pay less taxes every year.<\/p>\n","protected":false},"author":2,"featured_media":1144,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[15],"tags":[],"_links":{"self":[{"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/posts\/1143"}],"collection":[{"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/comments?post=1143"}],"version-history":[{"count":2,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/posts\/1143\/revisions"}],"predecessor-version":[{"id":3243,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/posts\/1143\/revisions\/3243"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/media\/1144"}],"wp:attachment":[{"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/media?parent=1143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/categories?post=1143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/upgifs.com\/blog\/wp-json\/wp\/v2\/tags?post=1143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}