Claim the Child Tax Credit on your taxes.Though this will reduce your child and dependent care credit, it’s still a good financial move for most taxpayers. Put tax-free money into your employer’s dependent care plan.The interest you pay on the loan won’t be tax deductible, and you will lose the capital appreciation you’d enjoy if you’d left it invested in the plan. Only borrow from your 401(k) in an emergency.If you need help saving, have money automatically deposited to savings from each paycheck. Get next year’s refund now by adjusting your withholding so that you break even with the IRS at the end of the year.Learn about your company’s fringe benefits, such as tuition assistance plans, free employee counseling, mass transit commuting assistance, Health Savings Accounts, and other tax-free perks.Small contributions growing from an early age are more valuable than large contributions made years later. Invest in 401(k)s and IRAs as soon as possible.Expenses directly related to your college education may be tax-deductible and may put more money back in your pocket. Tally the cost of books and necessary supplies purchased for your education.You won’t get a tax deduction, but there won’t be a tax on the earnings and growth of those funds if they are used for education. Invest in a 529 plan to save for your children’s education.Education expenses may be tax deductible if they maintain or improve skills required in your employment. Here are 12 tax tips to help you save through major life events.
There are, however, ways to save on your taxes through life’s transitions. Taxes are part of almost everything we do in life.
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