How do you think you can save money on your income tax?

To save on the income tax you owe is one of the major concerns for every taxpayer. None wants to pay tax to the government more than they should or they owe. To make sure you pay the right amount of tax, you need to know the tax laws. Below I have put up some of the steps, which may help you, same some money on income tax:

1. Contribute to your retirement fund sponsored by your employer. This will save you some money on your income taxes. Your contribution will be deducted from you gross pay before your income tax liability. Reducing your gross income reduces your overall income and hence, reduces the income tax you pay.

2. Make some charitable donations to organizations such as Goodwill, The Salvation Army or any such type of charitable organizations. While make donations, you need to get a receipt for that. Charitable donations, through cash or any services are deductible.

3. Ensure that you meet the IRS’s criteria. Hire independent contractors instead of employees. It will help you save on payroll taxes for those employees. Besides, you can pay your children and spouse for the work they do for you. This will help in converting high tax rates to lower ones.

4. Keep your utility bills paid on time, before the end of the year. The payments made towards the utility bills such as phone bills, insurance premiums etc can be included for tax waivers.

There are many ways you can save tax but the main factor is you should know how to go for it. You need to have knowledge for them as well.