It is not easy to Avoid Paying Taxes when getting a paycheck. There are quite a few things that you can do in order to save some of your money from going as taxes.
Municipal bonds investment
One of the best ways to earn tax free income is to invest in municipal bonds. These are debt duties brought forth by the counties, cities or states or any other government entities to help them raise funds for important projects like building rails, schools or highways. By purchasing these municipal bonds, you can enjoy federal tax freedom. You should do a little bit of research to find out which of the municipal bonds are tax free and buy bonds only from your state.
Open a health savings account
It is better off for you to open a Health Savings Account or contribute to it in order to meet the medical expenses that might come your way. There are a few specifics that you need to meet in order to qualify for the HAS account. You should not be enrolled in Medicare to get an HSA. You can use the money to pay for the medical expenses and the money spent will not be taxable.
Renting your home
If you are looking to enjoy some tax free income, then consider renting your home. The income that you receive by renting out your home for 14 days or less is completely free. There is no limit on the amount that you can charge as rent and therefore you can earn as much as you want in the 14 days. The vacation homes that you possess can also be rented out in this fashion to earn tax free income. If you want to know the ‘Different Ways To Invest Tax Free’, then do not miss to Click On This Link.
Hold on to your stocks
Holding on to your stocks longer, say about one year and a day, can earn you lower the tax rate on capital gains. If you are in the lower earning and the ordinary income tax bracket of 10% to 15%, then you get special offers for holding on to your investments for a longer period of time. The capital gains tax rate is 0% and thereby single filers can earn up to $37,650 in 2016 without paying a single penny.
One of the easiest ways to receive money from someone without being taxed for it is to accept it as a gift. The taxpayers are allowed to shell out up to $14,000 in a year to any people they like, according to the IRS. Any gift over this amount would be taxed by the IRS. This exemption on annual gift tax increases once every three to four years. This is a very handy option for all wealthy couples or individuals looking to pass their income to their children or grandchildren.
There is a tax credit on offer for all homeowners installing alternative energy sources in their homes. It is equal to 30% of what you spend on solar water heaters, solar electric systems, etc.
These are the few tips that will help you to save some money that you need to pay as taxes.