An unexpected tax bill can be a financial burden for many people who struggle to pay the money they owe. To avoid shelling out more of your hard-earned money than necessary, learn how to minimize your yearly tax bill. Here, the tax preparation team at Donna J. Troutman CPA PC in Lewisburg, PA, discusses some effective tax reduction strategies.

3 Effective Ways to Reduce Your Tax Bill

1. Contribute to an IRA

IRAs are not only excellent investments for retirement, but they can also save you money on taxes. Luckily, you can defer paying income tax on the money you contribute to an IRA—up to $5,500 (6,500 for tax payers 50or older). To determine eligibility or to see how much you can save before making a contribution, ask a tax preparation professional for an estimation based on the sum you can afford to set aside. (Income and other limitations may able)

2. Save for College

In addition to retirement, saving money for college tuition will allow tax payers to save money on their annual bills. Many people choose to contribute to a 529 plan, which is a savings account operated by an educational or state institution. Although you can’t deduct any contributions from your federal income taxes, you may be able to do so on a state return.

3. Donate to Charity

Charitable contributions—including money, clothes, food, and household items—are tax-deductible. If you’ve donated to charity and gathered the receipts to prove it, you may be able to save on your tax bill. Qualifying charities include non-profit schools and hospitals, religious organizations, and groups for war veterans.

Need help lowering your tax bill this year? The tax preparation team at Donna J. Troutman CPA PC provides attentive, friendly service to their clients while expertly preparing their returns. Give them a call at (570) 523-7337 to speak to a certified public accountant today. Or, visit them online to learn more about their trusted business consulting services.