what are the ways for lessening the taxes?

Question

reducing taxes by investing in what.... what are to be done legally.....

just like abating the taxes and debt....to reduce by investing in what....

Answer 1

Certainly investing in IRAs or 401Ks will reduce your tax liability. Traditional ones reduce your tax liability now, while Roth's reduce the tax liability when you retire.

Buying a home will reduce your income taxes, but force you to pay property taxes. However, homes grow in values while rents do nothing for you.

There are many mutual funds that have low tax implications, like Index funds or Tax managed mutual funds, that avoid making transactions that will trigger income tax, until you sell anyway.

Education expenses can often be deducted or you can received tax credits.

State or municipal gov't bonds are usually tax free.

Answer 2

There are a few things you can do... 401K plan, health savings or flex spending, your own business, and/or charitable donations are four things you can investigate to reduce your taxable income.

Answer 3

vote republican