tax services

5 Ways to Reduce Your Taxes for the Next Year 2023 – Small Tips that Will Go a Long Way

Did you know you can avoid paying taxes in 2023 legally? Thanks to new laws and regulations, some within the Biden tax reform plan, it’s true. Find out how you can avoid paying in and how SMBS tax planning and preparation can help.

New Biden Tax Laws & Regulations

Several changes have been made that will enable you to avoid paying taxes in 2023 legally. Here are some of the top ones:

Those who earn over $9875 per year must file as an individual. Therefore, those making under that amount are not required to. Even those who do have to file can avoid paying much or any if they use an individual or SMBs tax planning and preparation service that knows the ins and outs. If you elect to do the work yourself, you can still take advantage of the tax breaks but you must know what you are doing.

Since taxes are based on the amount of your taxable income level, the less that sum is, the less you will owe. Here are some ways to reduce that amount:

Tax credits go a long way in helping you to avoid overpaying taxes. Rich people know this fact and conduct their business accordingly. Rather than paying other businesses when they take a vacation, they buy the entire resort instead. Savvy business deals are solutions to tax debt because they lower your taxable income.

Find creative ways to tie your wants and needs into your business. If you love going to Rome, conduct business while you are there. Don’t just pretend to, find ties to your business that legitimately are in Rome.

You can also avoid paying taxes by becoming an investor because you can delay income by trading rather than taking cash. Or, you can delay taking the cash in one lump or set it up to be paid throughout the coming years.

When you reinvest profits you have made in business deals, such as selling property, you are required to pay taxes on it. Otherwise, you could end up owing up to 50% of the profit.

Qualified relocating expenses are deductible from your taxable income. Furthermore, some countries have no income tax like the Bahamas, Monaco, and even Dubai. Think of what you could do with all the money you aren’t having to pay in taxes. If you aren’t into such a big move, consider moving to a state that doesn’t charge state income taxes, such as Texas.

Charitable donations provide a two-fold relief. You can feel good about supporting the organization of your choice plus, money that is donated to the cause is not taxable. It’s a win-win!

The Biden Tax Reform Plan allows for higher income taxes to be charged. But, by reducing the amount of taxable income, the plan can actually work for you rather than against you. The plan is complicated but a professional tax service can ace it and you can come out better than ever.

If you want to avoid paying taxes in 2023 legally, put the suggestions above into action. Hire a certified public accountant for your SMBS tax planning and preparation who knows the Biden tax reform plan and all the new tax laws and regulations and who will put them into action for you. After all, why pay taxes if you don’t have to?