Recs

6

2014 Tax Tips: 3 Ways to Cut Your Taxable Income

With 2013 near its end, it's time for year-end tax planning moves to pay the IRS less next April. One key to paying less tax is reducing your taxable income as much as possible. Doing so requires knowing some little-known tips.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, runs through three ways you can cut your taxable income and pay less tax. Dan notes that contributing to a 401(k) can cut your income, reducing what your employer reports on your W-2 form to the IRS. He also runs through some deferral strategies, with special attention to those receiving bonuses or who own their own businesses. Finally, Dan reveals the requirements that Franklin Templeton (NYSE: BEN  ) , T. Rowe Price (NASDAQ: TROW  ) , and other mutual fund companies face and how they can affect your taxes if you own shares of their funds.

Another great reason to get tax-smart
It's true that 401(k)s cut your taxable income now, but they're also instrumental for your retirement. Yet while investors tend to be impatient with their retirement investments, your best strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (2) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 17, 2013, at 6:16 PM, Mathman6577 wrote:

    Maxing out your 401k and selling losing stocks is always a good thing to do this time of year.

  • Report this Comment On November 18, 2013, at 1:30 PM, Timkatt wrote:

    @Mathman: When the market is up 20% It's harder to find losing stocks.

Add your comment.

DocumentId: 2731751, ~/Articles/ArticleHandler.aspx, 7/29/2014 7:57:06 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger
TMFGalagan

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated Moments ago Sponsored by:
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASD 4,442.70 -2.21 -0.05%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/29/2014 4:01 PM
BEN $57.10 Down -0.31 -0.54%
Franklin Resources… CAPS Rating: ****
TROW $79.36 Down -0.89 -1.11%
T. Rowe Price Grou… CAPS Rating: ***

Advertisement