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.