4 Maui Tax Saving Tips for Businesses and Individuals
When it comes to minimizing your taxable income, the more Maui tax saving tips you know, the better!
Every single penny counts, whether you’re a business owner or an individual. The less you owe in taxes, the more money you can keep in your pocket!
Deadlines may be fast approaching every year. But with a bit of research and planning, you can definitely manage to lower your tax bill.
Here are 4 Maui tax saving tips that can help you pay less in taxes. The more tax breaks you manage to claim, the bigger your savings!
1. Maui tax saving tip n.1: track both your spending and deductions
Keeping track of what you spend is important. Not only will this help you budget your own finances, but it will help you keep track of possible deductions as well!
You can either use a software to track your cash flow, or you can do it yourself. The important thing is to do it periodically, so you’ll be ready to claim your tax breaks when the deadline approaches.
2. Boosting your retirement savings is one of the efficient Maui tax saving tips to follow
One of the best Maui tax saving tips out there is making pretax contributions to your retirement funds. By maximizing your 401(K) or 403(B) every year, you’ll significantly reduce your taxable income.
If you are self employed or own a small business, you have plenty retirement options to consider. Consult with a CPA or a financial planner and learn how to plan ahead and maximize your tax break.
Individuals who maximize their contributions are also eligible to pay less in taxes. The best way to plan ahead and secure a big tax break is to notify your employer you plan on increasing your automatic deferral.
3. Consider donating to charity to minimize your taxable income
There’s no need to be wealthy to donate to charity! Even smaller contributions can help a worthy cause, while they can also help you pay less in taxes.
Donating cash or goods by the end of the year, can make you eligible for a tax break. You can also donate stocks or mutual funds and you could be eligible for even greater tax benefits as a result.
If you’re looking for Maui tax saving tips, don’t forget charitable acts can be a win-win. Just remember to keep records of all written receipts or bank statements for your contributions.
4. A great Maui tax saving tip is to deduct your medical expenses the smart way
Medical, dental and other healthcare expenses make you eligible for a tax break, depending on your adjusted gross income.
The IRS allows for a deduction, provided your medical expenses exceed 7.5% of your AGI for 2017 and 2018. If your expenses exceed the threshold, you should expect a tax break this year. However, if you’re close to the limit, but not quite there yet, you could make an effort to pay for additional medical expenses you previously postponed. Take your deduction over the threshold and take advantage of the tax break you deserve.
As always, consult with a certified public accountant first to make sure your healthcare expenses make you eligible to minimize your taxable income.