Tired of giving so much of your hard-earned dollars to taxes? Let us help you with that. These tips can help you legally decrease your tax bill.
Take advantage of the best deductions
Tax deductions are powerful components of a tax return, allowing you to trim your tax bill and keep more money in your pockets. There are some incredible benefits available that allow you to earn up to a certain amount of gross income before you have to share a piece of your income with the IRS.
Don’t sell winning investments so fast
Being an investor comes with another level of benefits that you probably weren’t privy to if you only receive earned income. But this also requires a bit of strategy to reduce your taxes. For many, it’s tempting to buy stocks and sell them as soon as the price shoots up. But if you hold on to your investments for a little bit longer — over a year — you’ll be eligible for the coveted long-term capital gains tax rates of 0%, 15%, or 20%.
Earn more qualified dividends
If you’re not ready to sell your stocks just yet, there’s another way to get those same rates you would get for long-term capital gains. Another incredible opportunity comes in the form of qualified dividends.
These dividends allow you to bypass the higher tax rates that are associated with ordinary dividends, such as those earned from real estate investment trusts (REITs) and master limited partnerships (MLPs).
For more information keep reading at Fox Business.