3 Ways to Slash Your 2021 Tax Bill Before the End of the Year
The holiday season is almost upon us and that means the far less enjoyable tax season is just around the corner. Before too long, we'll have to hash out our 2021 income and expenditures with the government and hope we don't get slapped with a surprise bill. Luckily for us, there are some things we can do to reduce how much we owe the government. Here are three moves that can help you save big on your 2021 taxes.
Traditional tax-deferred retirement account contributions to vehicles like traditional IRAs and 401(k) plans reduce your taxable income for the year. For example, if you earn $50,000 in 2021 and you contribute $5,000 to a tax-deferred account, the government won't tax you on that $5,000 right now. You'll only owe income tax on the remaining $45,000.
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Source Fool.com
