Please ensure Javascript is enabled for purposes of website accessibility

2014 Tax Tips: 3 Ways to Cut Your Taxable Income

By Dan Caplinger – Updated Feb 15, 2017 at 10:39AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

2013 is ending, and its time to do what you can to cut your tax bill next April. We've got the tips you need here.

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 (BEN), T. Rowe Price (TROW), and other mutual fund companies face and how they can affect your taxes if you own shares of their funds.

Fool contributor Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

T. Rowe Price Group Stock Quote
T. Rowe Price Group
TROW
Franklin Resources Stock Quote
Franklin Resources
BEN

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.