Many Americans today are concerned about being able to pay all of their tax debt. In the best-case scenario, the tax debt can be feasibly paid off, but sometimes taking care of the tax debt will lead people into bankruptcy. Assuming you didn’t skip out on paying your taxes entirely (even though it’s not an uncommon thing to do), there are a few ways you can eliminate the tax debt that you could face in the future. And, it all has to do with paying fewer taxes in the beginning!
Want to Know More?
Of course! What we’re talking about today are tax deductions. Being aware of what you might be able to deduct makes you a smarter taxpayer. And, the more informed you are about what you owe (and what you don’t owe!) Uncle Sam, the less likely it is you’ll get hurt later on!
Retirement. Did you know you can deduct up to $5,000 of your IRA contribution? If you’re over the age of 50, that figure bumps up to $6,000! There’s another incentive to start saving for the future!
Child/Dependent Credit. You also may qualify for a tax credit if you are paying childcare. Remember, a tax credit is even better than a deduction because you keep even more money in your pocket.
Student Loans. They can be a pretty heavy burden. But, you can deduct the interest you’re paying on those loans! If you’re paying a lot of student loans, look into it. The savings add up.
These are just a few of the ways you can start deducting. Smart deductions make tax debt less likely. And, if you’re already facing bankruptcy, you know that every penny counts!