In addition to taking advantage of free tax services, there are many other ways to save.
Trained and IRS-certified volunteers provide free tax preparation for the elderly and those with low and moderate income.
Many people who are eligible for free tax services, for example, at IRS-approved Volunteer Income Tax Assistant (VITA) sites, pay to have their taxes prepared.
Money saved by using free tax prep, added to part of a refund, could go right into a savings account or be used to pay down debt.
HSAs are modeled after IRAs--money for medical purposes can be deposited free of tax, it can grow tax free, and it can be spent for medical care, tax free.
For instance, the Tax Counseling for the Elderly Program offers free tax preparation to anybody with basic tax returns, with priority for those age 60 and older, says IRS spokesman Eric Smith.
Live chats, mobile apps and free tax prep at Wal-Mart Stores are in the mix this tax season, which kicks off Jan. 17, 2012, the first day the IRS will accept your tax forms.
You can use HSA money to pay current medical bills or leave it growing tax free and use it tax free for uncovered medical and dental expenses in retirement.
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Most other countries either tax the profit at the corporate level and then dividends are tax free, or dividends are distributed tax free at the corporate level and then taxed at the usual individual income tax rates.
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The Roth grows tax free and eventual distributions are tax free.
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The Roth is, of course, the now familiar IRA that allows savers to contribute aftertax money, which grows tax free and can be withdrawn tax free in retirement.
There are five different tax regimes for withdrawals: tax free, only the principal tax free, taxable at regular rates, taxable at regular rates plus 10% and taxable at regular rates plus 25%.
Like a 529 account, the money grows tax-free and is tax-free when withdrawn for education expenses.
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Plus, unspent HSA dollars can be invested, grow tax free and can be used later, tax free, for medical, dental and vision expenses.
Precisely because they are the only entity choice that allows appreciated property to not only go in tax-free, but also come out tax free.
And that tax-free versus tax credit bonds would too.
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Local in-person tax preparation and filing assistance at free local tax help centers (find a free center near you using the zip code tool) or call 2-1-1 to schedule an appointment.
Yet Roth savings can be very powerful as the earnings and eventual distributions are tax-free, leaving retirees with a tax-free bucket to draw on when managing their retirement income and retirement tax bracket.
The AOTC may be claimed in the same year that a tax-free distribution is made as long as the same expenses are not used to calculate the tax-free distribution AND the American Opportunity Tax Credit.
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HSAs come with a unique triple tax benefit: you sock away money pretax, it grows tax free, and when you take money out to pay for medical expenses, it comes out tax free.
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Although your contributions to a 529 account are considered gifts, there are two unusual benefits: money in these accounts grows tax-free and can be withdrawn tax-free, provided it is used to pay for college, a graduate, vocational or another accredited school, or for related expenses.
Many technology companies utilize IP companies in tax free states and tax haven countries too.
Areas that tend to gum up the works: asset sales, perks (such as tax-free public transit cards), tax-free transactions, outside partnership income and deferred compensation.
Looking at the three sources of dollars he could tap in retirement -- taxable, tax-deferred and tax-free -- he determined that tax-free was best for him.
So if the dentist doesn't need the money, he can leave it growing tax free for his kids and grandkids, who can then stretch out tax-free withdrawals over their own life expectancies.
If you qualify for the tax benefit, the interest income is free of tax.
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Depending on the kind of IRA you establish (traditional versus Roth), you can rely on tax-free withdrawals or tax-deferred growth in the future.
With these bonds now yielding 7% tax free in a high tax state like California one would expect them to be among the last to drop so low.
You can let the Roth IRA sit untouched, growing tax free, and then leave it to your heirs, who are allowed to stretch out withdrawals (if they want to) over their own lifetimes, enjoying decades of extra tax-free growth.
You can use money that you borrow in order to calculate the deduction but you cannot claim a deduction or credit based on expenses paid with tax-free scholarship, fellowship, grant, or education savings account funds such as a Coverdell education savings account, tax-free savings bond interest or employer-provided education assistance.
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