There are plenty of ways on which you can save your US Federal Tax. Just you have to do Tax planning. The Step you can take without doing and Tax evasion. This is for Tax calculation of year 2019.
- Future Education
If you incurred qualifying educational expenses. For the First qualifying amount $10,000. You can claim the 20% of this deduction. You can avail this even if you not activity involve in getting degree currently. You can claim as life time learning credit. You can claim the credit of $2,000 which is maximum. Hence there is no limit you have on number of years you can claim the credits.
- All Business expenses are eligible for deduction.
As per rules of IRS that all the expense which are spent for business purpose are allowed as deductions. Now you can claim the expenses which you incurred for your personal travel to Vegas or some other place. Now you have to show in such the way that your personal expenses was done for business trip which was made to meet your business customers and to find some business opportunity. Also make your home some part of it as office once you comply the IRS rules then claim your home expenditure are the official expenses made. You need to show the expenses made are for the outstation quest who stayed for business purpose.
- Invest some Cash in flexible plans
Speak to your employer to offer flexible spending plans accounts. Contribution to FSA qualify for out of pocket medical expenses. Enrol yourself in the dependent care FSA for the people who provide services such as disable relative unit and child care etc.
- Saving for College for your Kids
Open 529 plan for the your kids also includes grandchildren, nieces and nephews. Contributions for which 529 accounts are not tax-deductible at the federal tax level, Many times invested funds grow tax free. It depends upon where do you live, at present. There are more than 30 states including Washington DC allow this deductions or credits for contributions 529.
You are allowed to maximum deduction of $10,000 when you take the deduction of all your taxes paid to the state you live in your federal taxable income,
- Medical Expenses
You can be allowed for allowable medical expenses only if your expenses exceed 10% of your current income — from 7.5% in year 2017 and year 2018. You’ll be need to list your claim in this deduction. You should keep all your bills you had expended throughout the year. Your expenses incurred are high exceeding the threshold limits for deduction. Deduction will not be allowed if it exceed the limits.