LEXINGTON, Ky. (WKYT/SWD) - Everyone would love to pay fewer taxes to Uncle Sam. Matt Dicken, CEO and founder of Strategic Wealth Designers, says there are five ways to do just that.
First, if your employer has a 401K match, max it out. Let that money grow for you tax-free.
Second, to ease some of those tax burdens, look for opportunities to donate cash to a local church or charity. Dicken says giving is a great way to reduce the tax hit you would have taken otherwise.
Next, take advantage of an HSA contribution. We all end up with medical expenses, be it a child breaking an arm or loved one becoming very ill. While these events aren't positive, you can get a tax advantage by being prepared.
Money contributed to an HSA account is tax-free. Dicken says this is one of the biggest things people miss out on to capitalize on tax-free dollars.
A fourth option is applicable to almost everyone. Clean out your house. Get rid of all those things in your basement, closets, and attic that you no longer use. You can donate the items and use them as a write-off.
Finally, Dicken suggests turning your hobby into a side business. It could be considered an "Encore Career." It will take some cash upfront and will help in the tax column at the end of the year as well.