Sandra Wallach

Amazon web service is an online platform that provides scalable and cost-effective cloud computing solutions. AWS is a broadly adopted cloud platform that offers several on-demand operations like compute power, database storage, content delivery, etc., to help corporates scale and grow.

The Election Commission of India is an autonomous constitutional authority responsible for administering election processes in India The body

1. Step 1: Configure the Yarn Repository Open a terminal window, and add the GPG key: curl -sS https://dlyarnpkgcom/debian/pubkeygpg | sudo apt-key add -
2. Step 2: Install Yarn Update your local repository listings: sudo apt-get update

There are many tax credits available, and it is essential to claim all the benefits you are entitled to. Credits are usually better than deductions because they can reduce the tax you owe, not just your taxable income.

For example, suppose you have $50,000 taxable income and $10,000 in tax deductions. These deductions reduce your taxable income to $40,000.

In your tax bracket, that $10,000 of taxable income would have been taxed at a rate of 12%. As a result of your deductions, you would save $1,200 on your tax bill.

Because tax credits reduce the amount of tax you owe, dollar for dollar, $10,000 in tax credits would mean $10,000 in tax savings instead of $1,200.

Some of the most popular tax credits are:

Contributions to an Individual Retirement Account (IRA) can be a great way to lower your tax bill. The two most popular IRAs are Traditional and Roth, and the difference between them is when your contributions are taxed.

Company sponsored 401(k) plans are the most popular option, since many employers often match employee contributions to their 401(k) plans. Experts recommend contributing either the full amount allowed, annually ($20,500 for 2022 or $27,000 for taxpayers 50 and over), or - at least - the maximum amount that will be matched by your employer.

Traditional IRAs are usually pre-tax contributions, meaning your contributions are placed in your IRA before being taxed, lowering your taxable income for the current tax year. You won't pay taxes on your contributions until you withdrawal the money.

Roth IRAs are taxed upfront.  So, although these contributions don’t lower your tax bill in the present, the distributions you take when you retire, including earnings, are tax-free.

Pre-tax contributions to Health Savings Accounts (HSA’s) also reduce your taxable income. The IRS allows you to make HSA contributions until the tax deadline and apply the deductions to the current tax year. This means you can continue lowering your tax bill, even after December 31.

Originally created to help families save for college tuition, 529 plans were expanded by the Tax Cuts and Jobs Act of 2017 to cover savings for K-12 public, private, and religious school tuition. You can use up to $10,000 of 529 plan funds per year, per student, to pay qualified educational expenses.

Making charitable contributions is another great way to reduce your tax bill. Donating cash, toys, household items, appreciated stocks and your volunteer efforts to qualifying charitable organizations can provide big tax savings.

Except that for 2020 you can deduct up to $300 per tax return of qualified cash contributions if you take the standard deduction. For 2021, this amount is up to $600 per tax return for those filing married filing jointly and $300 for other filing statuses.

Reporting losses on capital investments can also reduce your tax bill. “Loss harvesting” is considered to be a key year-end strategy. This is when you sell your investments to “realize” a loss(the act of selling at a loss). These losses can be used to offset capital gains taxes, dollar for dollar, reducing your overall tax liability.

Usually, business owners and self-employed taxpayers are able to use a much wider range of tax reduction strategies than individual taxpayers because of tax deductible business expenses. Some common business tax deductions include,

The lower your net profit, the lower your self-employment tax will be, so writing off as many expenses as possible can help reduce your tax bill.  Claiming business tax deductions can also lower both your income taxes and self-employment taxes, and you can deduct a portion of your self-employment tax payments on your personal tax return.