Although we often avoid talking about taxes until the end of the year, tax planning is something you should do throughout the year. You don’t want to wait until you the year ends to consider investments that could not only reduce your tax burden but also pay you back over time. By planning ahead with your investments and finances, you can find ways to reduce your taxes and help your money grow. These three opportunities are great ways to invest your money in order to lower your taxes and improve your bottom line.
Go To College
One of the best tax credits available is for college expenses, and because college can be so expensive it should definitely be taken advantage of. If you do not have a college degree, you may be eligible for the Hope Credit, which is available for students in their first two years of college. If you already have a degree, you can advance your knowledge by taking college courses which may make you eligible for the Lifetime Earning Credit. In both cases, you could cut your tax burden while also increasing your value in the workplace. The more valuable you are in the workplace, the more money you can earn.
Pay-For-Success Contracts
Pay-for- Success contracts allow you to provide capital funds as an investor that are used to deliver services designed to achieve certain outcomes. The Pay-for- Success model is changing the way consumers are receiving human services around the world. There are about $200 million dollars in PFS contracts worldwide. Projects have included housing, green home initiatives, crime reduction and other services designed to improve communities. By investing in a Pay-for- Success program, you can not only reduce your tax burden by deducting the amount of the investment but you will also assist your community with needed programs and receive a return on your investment.
Work Overseas
If you have always wanted to travel and have a skillset that could benefit other countries, consider obtaining a job overseas. If you are a United States citizen living and working overseas, you may have different tax requirements. You may also be able to exclude your rent, utilities and other living expenses. However there are specific rules surrounding this, like you must establish a bona fide residence in a foreign country among other things. It is important to talk to a tax adviser to determine your tax credits for living and working in a foreign country. Almost any skill can be applied to foreign countries, especially those in the medical field with a BSN to NP online degree, engineering and education.
These three suggestions can not only reduce your tax burden, but could provide you with a significant return on your investment. As always, check with a tax adviser to be sure you qualify for tax credits or deductions. It may take some creativity, but there are always tax reductions that can be found. Use the tips above as well as any others you find on your own research to find the tax reductions that apply to you.
I hope you enjoyed this article about how to reduce your taxes with investment opportunities that pay you back over time.
Interested in more articles about frugal finance?
Read My Related Posts:
- Business Ideas For College Students
- Tax Time Tips For Small Business Owners
Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
Digital Marketing | SEO | Social Media
Mike Schiemer Builds Better Business
Share This On Social Media:
