Reduce Your Tax - 11 Out of the Box Ideas

In most countries tax is an essential part of life. It helps to build roads, buildings and community infrastructure. However, you shouldn't pay more tax than you have to. If you are eligible for discounts then you should claim them! Listed below are 11 money saving tips to help you reduce the amount of tax you pay. Remember do things honestly!

Tip 1: Saving on taxes is a year round job: Don't just consider your taxes at the end of the financial year, think about them all year round. Every day you have opportunities to save money on your taxes. So keep your receipts and diligently save on taxes. A bit of a hassle but one you're in the routine it'll get a lot easier.

Tip 2: Actively research how to reduce your tax: Taxes are part of any free society, but why pay more than you have too. Spend some time speaking to a tax expert and explore all the ways you can reduce your taxes.

Tip 3: Defer end of year bonuses or put them into your retirement account: This way you will either transfer your tax to the next year, or pay a reduced tax by putting money straight into a retirement account.

Tip 4: Keep all business related receipts: While it is onerous it will mean that you pay less tax. So be diligent about this.

Tip 5: Consider all deductions: Many people just look at the standard deductions and go with those. If you put in a bit more research, you will find that there are hundreds of deductions you can claim. Every extra deduction increases your income. That square metre of your bedroom where you keep the printer - claim it. Do some good research and you'll be pleasantly surprised.

Tip 6: Gift some of your money: You can gift money to family and friends tax free...take advantage of it.

Tip 7: Consider a profitable loss: If you have down well in a certain year, consider selling off some of your losses, shares or ventures to lower your taxable income.

Tip 8: Tax deductible donations: While there are financial benefits to this (especially if you do it at the end of the year to lower your tax), the main benefits are social benefits, and the knowledge that you are actively helping your community.

Tip 9: Put your children (over 14) on the payroll: This way you can transfer some of your income to your children. What's more they will learn some great skills as well. They'll probably just stick you in that retirement home you saw on 60 Minutes anyway, so get something out of them while you can!

Tip 10: Double check your tax: Mistakes happen...make sure that you double check everything so that you are not paying too much, or not paying enough, which will result in hefty fines.

Tip 11: Do things honestly: While we recommend that you shouldn't pay more tax than you have to, be honest in your dealings. You don't want your retirement plan to include 5 years in sing sing and sharing the bridal suite with Falasi the 6 foot Samoan.

About the author: Rusty O'Conor is an affiliate marketer with eight years experience. His areas of expertise include SEO, articles, ezines, blogs and PPC. Rusty is particularly interested in the areas of goal setting, time management and financial and money management. Rusty is married with three young children, is an Australian national and currently lives as an expat in the Middle East. If you want to check out all his money saving tips visit http://www.1000moneysavingtips.com

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