How to save on taxes at work – here are some surprising ways to save on taxes.
Many people who are currently in work do not realize that paying for things through your employer has its benefits. There are a few ways to do this:-
First, to pay for large expenses ask your employer to take the expense from your salary pretax. Second, ask your employer to pay for the expenses up front, rather than you paying for it first and claiming the money back.
If you ask your employer to take the expenses from your salary pretax you will have less salary to pay tax on. If effectively reduces the amount of money you are earning.
Investing in a 401k is the another thing you can do to reduce your tax bill. If there is no 401k available through your employer then invest is an IRA. These are also tax free.
Health and medical expenses can also be used to reduce your tax bill. This is done through a Flexible Spending Account or Health Saving Account. They can be used to pay medical and dental expenses.
Childcare is another area where you can save some taxes. Childcare can be paid for with pretax dollars and is also called Dependent Care Reimbursement. This can also be used to pay for the care of the elderly and people with special needs.
There is also tax help for public transportation. Trains, buses, subways and other forms of public transport can all be paid for with pretax dollars.
Related articles
- Taking Advantage Of Tax Credits (2012tax.org)
- How To Get A Tax Credit For Retirement Savings (2011tax.org)
