Money saving tips on cutting down on your tax bill

December 26, 2007

It’s T minus 4 days before 2007 ends so do the time to pay our taxes is also looming.

In the deepest of our hearts, we just want to pay the most reasonable tax as we want to make sure that they go to where they should be. For at the end of the day, tax is one of the two things in this world that is inevitable. Death being the other one, of course.

So, have come up with a few money saving tips on how to wisely and legally cut down on your tax bill for this year and for the coming years to come.

  • Donate now
    Now is one of the perfect times to give something to charities. The accepted amount that you can donate should not be more than 50% of your annual gross income. But make sure to give to a charitable institution that you truly support. It’s your hard-earned money that they’ll be getting.
  • Be environment-friendly
    Buying the eco-friendly stuff can make give you a $500 savings and less tax. IRS.gov says that we can save $50 for getting a main air circulating fan and a propane and $150 for a qualified natural gas. A high-efficiency air conditioning system or water heater can qualify us for a $300 tax.
  • Chip something to your retirement plan
    Even if you’re still young and strong, it’s prudent to put up on your retirement. You can donate to a maximum of $15,000 or $20,500 if you’re in your 50’s.

Paying our taxes is one of the thing we will do in our lifetime. Some manage to evade but in the end still get busted. But I can understand some who are hesitant because we want to really see how our taxes are spent. Just have to do our part and monitor what is happening around us.