5 ways to save on taxes in 2023

Taxes can weigh down your finances, but you don’t have to let them! There are plenty of creative and innovative ways to save on taxes in 2023. We’ve gathered five unique tips that will help make sure your money goes where it should – into your pocket (not Uncle Sam’s!) From taking advantage of tax credits like the Child Tax Credit or Earned Income Tax Credit, to opting for a flexible spending account, there are lots of ways you can save on taxes this year without missing out on any deductions. Keep reading to explore our top 5 tax-saving strategies for 2023 and beyond.

  1. Utilize Deductible Retirement Accounts: Setting up a deductible retirement account such as an IRA or 401K can significantly reduce your taxes in 2023. Contributions to these accounts are tax-deductible, which means that you don’t have to pay taxes on the money you contribute. Additionally, any income earned from investments within the account is not subject to tax while it remains in the account.
  2. Take Advantage of Tax Credits: Tax credits directly decrease the amount of taxes you owe, dollar for dollar. Some examples of tax credits include child and dependent care credits, education credits, health coverage credit, earned income credit and more. Researching which tax credits apply to your situation can help lower your tax liability.
  3. Claim Deductions: Taking deductions helps reduce the amount of income that is subject to taxes. Some common deductions include mortgage interest, property taxes, student loan interest and several others. Every year the IRS publishes a list of allowable deductions, so make sure you’re up-to-date on those when filing your tax returns in 2023.
  4. Maximize Your Charitable Donations: Making charitable contributions can be one of the best ways to save on your taxes in 2023. When donating money or goods to qualified organizations, make sure you get official documentation for your donation as this will help you write off any associated expenses come tax time.
  5. Make Use of Tax Preparers: Professional tax preparers can help you save money on taxes in 2023. They’re familiar with the latest tax laws and are up-to-date on deductions, credits and other ways to minimize your liability. Using a tax preparer is especially beneficial for complex tax situations or for those who are self-employed.

Tax season can be a stressful time of year, but by following these 5 tips, you can reduce your tax burden and save money in 2023. Use this information to make sure you’re taking advantage of every opportunity available to lower your taxes and keep more of your hard-earned cash!