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Remember, tax eviction is illegal but tax avoidance is totally legal! Here are 3 ways you can legally reduce your tax bill every year:
1️⃣ 401k Contribution
Invest in your retirement with a 401k through your employer. By contributing a portion of your income, you not only build a nest egg for the future but also reduce your taxable income today. It's a win-win – save for retirement AND pay less in taxes.
2️⃣ IRA Contribution
Individual Retirement Accounts (IRAs) offer tax benefits too (these are separate from what your employer offers). Whether you choose a Traditional IRA (lower tax bill today) or Roth IRA (lower tax bill in the future), contributing to either can greatly help you avoid taxes and maximize your savings.
3️⃣ HSA Contribution
Health Savings Accounts (HSAs) are a game-changer. Contribute pre-tax dollars to cover medical expenses and enjoy a tax deduction. It's a practical way to manage healthcare costs while getting tax advantages.
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