Finance

Way To Save Tax On Your Retirement Income

Way To Save Tax On Your Retirement Income

There are only a few weeks until the year ends. Among many other things, it is time to act to pay fewer taxes next spring. How? We remind you some basic tips that will help you to cut your income tax. You can also take some tips from any experienced financial planner like Ed Rempel in order to save some money. Ed Rempel Brampton has been a Certified Financial Planner for over twenty years, and an accountant for thirty-three years.

Way To Save Tax On Your Retirement Income

Do Real-Time Tax Forecast:

One of the typical problems faced by self-employed workers and companies is that they do not know the result of the taxes until the time comes to present them. How to minimize my taxes is a big question that we can face everybody.

Another measure to pay less taxes in 2018, and in the future, is to have a forecast of results to be able to make the necessary adjustments on the fly. The more information you have, the better decisions can be made.

Keep your Accounts up to date:

That is, the self-employed and companies must keep their accounts up to date in order to estimate in advance how much the payment of taxes will be . However, keeping accounts up to date is much easier if you use, again, online accounting programs. Its advantages:

  • The information is always updated in real time.
  • You can generate drafts of the tax models to have an estimate of the amount to be paid or, hopefully, to repay.
  • The tax accounting entry is generated automatically.

Extracting all this information on the key dates of the year (especially at the end of each quarter) allows, in advance and a lot of certainty, to know how much taxes we owe to the Treasury. This will allow you to make better decisions in real time to adjust the activity; which translates into optimizing the result of your taxes at the end of the year.

Avoid errors when generating and presenting taxes:

Generating tax models can take a long time. In addition, you run the risk of presenting them out of time or with errors that entail sanctions by the AEAT.

Quickly and easily, programs collect your accounting information in real time and automatically fill in the boxes to generate the tax models.

Review your expenses as a professional:

If you pay union dues, fees to the professional college or if you have had a labor lawsuit and have paid fees to the lawyer and solicitor, those expenses are deducted from the income from work, with which you pay less for them.

The donations are deducted:

If you make donations to NGOs, foundations and non-profit entities, you can deduct more than last year: you can deduct 75% on the first 150 Euros, and 30% on what exceeds that amount (can go up to 35% if it is the third that you donate to the same entity and each donation has been equal or superior to the previous one).

If you are a landlord, take advantage:

If you own a property for rent, you can deduct from income subject to IRPF the expenses incurred to obtain it: IBI, advertisements, agency, insurance, community and also the repair and maintenance expenses and interest on loans for the purchase or improvement of the property (these with a limit).

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John Paul

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