💡Commuter benefits allow you to spend up to $300 tax-free on commuting expenses.
🏦Take advantage of retirement plans offered by your workplace, such as a 401k or 403b.
🏥Consider opening a Health Savings Account (HSA) to pay for medical expenses with pre-tax money.
💳Utilize Flexible Spending Accounts (FSA) and Dependent Care FSA to pay for eligible expenses with pre-tax money.
📈Understand the tax advantages of long-term capital gains and deductible margin interest.
Can I legally reduce my taxes if I earn less than $400,000 a year?
—Yes, there are numerous legal strategies you can implement to reduce your taxes, regardless of your income level. This video provides tips and tricks specifically applicable to those earning under $400,000 a year.
Are these strategies only applicable to individuals or also to businesses?
—Most of these strategies can be utilized by both individuals and businesses. However, it's advisable to consult with a tax professional or accountant to ensure proper implementation and compliance with tax laws.
Are there any risks involved in using these strategies?
—These strategies are legal and widely used. However, it's important to understand the specific rules and regulations surrounding each strategy and to keep accurate records. Consulting with a tax professional or accountant can help minimize any potential risks.
Do I need to report my cryptocurrency losses for tax purposes?
—Yes, it's important to report cryptocurrency losses for tax purposes. These losses can be used as tax deductions, potentially reducing your overall tax liability. It's recommended to keep detailed records of your cryptocurrency transactions for accurate reporting.
How can I fix my W-4 payroll settings to avoid underpayment penalties?
—To fix your W-4 payroll settings, you must adjust the amount of taxes taken out of your paycheck. Contact your payroll department or refer to your payroll settings in your employee account to make the necessary adjustments. It's important to ensure that you're not underpaying taxes to avoid penalties.
00:00Introduction and disclaimer about the importance of speaking with your own accountant.
01:52Explanation of the video's focus on tax strategies for individuals earning under $400,000 a year.
03:21Discussion of commuter benefits and how they allow for tax-free spending on commuting expenses.
05:29Explanation of the benefits of contributing to retirement plans, such as a 401k or 403b.
07:40Overview of Health Savings Accounts (HSAs) and how they enable tax-free payment of medical expenses.
09:09Explanation of Flexible Spending Accounts (FSA) and Dependent Care FSA as pre-tax payment options for eligible expenses.
11:20Discussion of the tax advantages of long-term capital gains and deductible margin interest.
13:07Overview of other tax-saving strategies, such as reporting cryptocurrency losses, reviewing the 1099-B tax form, and using tax deductions for gambling losses and traditional IRAs.
15:37Introduction to additional strategies like 529 plans, adjusting W-4 payroll settings, and understanding the minimal rental use rule.
18:39Conclusion emphasizing the importance of documenting and implementing these strategies correctly and consulting with a tax professional when needed.
