Taxes may not be the most exciting topic in the world… but knowing a little tax law can literally save you thousands and thousands of dollars each year.
Here are 17 “legal secrets” from Yahoo News you can use to reduce your tax burden this year:
1. A retirement account benefits you in two ways. Most contributions are deducted from your taxable income… and they grow tax-free until retirement.
2. A health savings account can roll over indefinitely… and grow tax-free. Use this especially if you have a high-deductible medical plan.
3. Combine a vacation with a business trip. You’ll be able to deduct some of the largest costs such as airfare and hotel.
4. If you work from home, take the home office deduction. If you’re a regular reader of The Crux, you could be well on your way to working from home.
5. Self-employed individuals can deduct everything they need to run a business… internet, vehicles, travel, office supplies. The list goes on.
6. If you are self-employed and pay 100% of Social Security taxes owed, you can deduct 50% of the taxes paid… no need to even itemize this claim.
7. Another big one for self-employed individuals… For 2013, you can write off a bonus depreciation of 50% of the new cost of equipment.
8. Deduct mileage costs if you drive to a satellite office or use your vehicle for business. This doesn’t count for commuting.
9. If you have taken school courses to improve your job skills and meet a certain income requirement…