You’ve probably already considered and implemented some of the various tips you can use to save money in your budget throughout the year. But what ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚabout saving money on your taxes?

While you can’t avoid taxes entirely, there are strategies you can adopt to reduce what is probably one of your biggest annual expenses. To help you save money on your taxes this year, we spoke with five financial experts to get their top tax-saving tips—and they go well beyond taking advantage of tax deductions and credits.

Read on for some lesser-known tips you may not have heard of.

Josh Bennett: Keep a Paper Trail

“Always ‘CYA’ with your tax strategy,” says , founder and chief executive officer (CEO) of Vinc🦂ere Wealth Management and Vincere Tax. “This is something that is incredibly important when trying to cut your tax bill. The more aggressive you are, the more likely you are𝔍 to be on the IRS’s radar.

“The 澳洲幸运5开奖号码历史查询:tax codes are loaded with ways to save on taxes if you play within the rules of the game. You can be very aggressive with minimizing your bill, but the best-laid tax savings plans are useless if you lack good bookk𒁃eeping or documentation. It can be all taken away from you in the blink of an audit. Plus you can get massive penalties, too. 

“No one likes doing tax organization and paperwork, but good documentation (such as holding onto receipts) allows you to be much more confident while being aggressive in your tax planning. Don’t assume you know enough to protect yourself on your own; get a good 澳洲幸运5开奖号码历史查询:bookkeeper and/or 澳洲幸运5开奖号码历史查询:tax preparer.”

Joe Calvetti: Consider a Low-Income Year

“There is value in not only looking for ways to reduce your tax liability each year, but also in minimizing your lifetime taxes,” says , certified public accountant (CPA) and founder of Still River Financial Planning. “So if you are in a temporarily low-income year, consider how you can move income into that year or move deductions out of that year to take advantage of your new, lower 澳洲幸运5开奖号码历史查询:tax bracket.

“You may find yourself in a low-income year if you have a spouse who leavܫes the workforce to care for children, or if you take a sabbatical, start a business, or retire, for example.

“In this case, you’ll want to consider moving income into the current year—for example, by exercising stock options—to benefit from the lower tax rate. You may also be able to take advantage of 澳洲幸运5开奖号码历史查询:capital gains harvesting, where you sell investments within a 澳洲幸运5开奖号码历史查询:brokerage account that have increased in value and immediately repurchase them. This creates a taxable event, allowing you to pay a potentially 🌊lower tax rate on the gain and increasing your cost basis, which means less taxable gain to be realized in the future.

“In a low-income year, you should also consider contributing to 澳洲幸运5开奖号码历史查询:Roth retirement accounts, where the contributions are made after tax, as opposed to traditional pretax accounts. You might even consider converting some pretax retirement savings to one of the 澳洲幸运5开奖号码历史查询:best Roth IRA accounts to pay taxes on the amount converted while your tax rate is low.”

Amy Irvine: Always Think Long Term

“Don’t be shortsighted on your tax picture and look long term,” says , owner and principal of Rooted Pl🔜anning Group.

“What I mean by this is that sometimes it makes sense to pay more tax now, because it will save you significant taxes in the future. We know right now that the current tax rates are scheduled to sunset in 2025, which will lead to higher tax rates in 2026. If you are going to be in a higher tax bracket in the future (which, based on these rules, most will be), then it might make sense to contribute to a Roth IRA or 401(k) now at today’s rate, so💜 that you will not pay at a higher rate in the future.

“For many clients, they’ve done what they’ve thought was the right thing and they have maximized their 401(k) pretax withholding. But then when they retire, they have large 澳洲幸运5开奖号码历史查询:required minimum distributions that affect their tax rates, their property tax credits, and their Medi💙care premium.

“If your company has a Roth component, consider contributing to that, and if they don’t, consider a Roth IRA (this may need to be a 澳洲幸运5开奖号码历史查询:backdoor Roth) or a Roth conversion of current IRA money at today’s tax rates, so that in the future, you ꧟will have a tax-free resource.

“Also consider putting some money into a general brokerage account; yes, you may pay tax on that money now, but it may only be at 澳洲幸运5开奖号码历史查询:capital gain tax rates (which are 15% for most people, or a maximum of 20%). [This is] still a lower tax bracket and less impactful than a ꧟distribution from a tax-deferred v💖ehicle if you need a lump sum for something.”

Troy Sharpe: Take Advantage of IRAs

“Non-working spouses can save for retirement, too,” says , founder and CEO of Oak Harvest Financial Group. “If the other spouse is working and the couple files a joint federal income tax return, the non-working spouse can open and contribute to their own traditional or Roth IRA.

“In 2023, the annual contribution limit for IRAs is $6,500 [rising to $7,000 in 2024 and 2025], and if you’re age 50 or older, you can contribute an additional $1,000 annually. If you contribute to the traditional IRA, that’s up to an additional $7,500 tax deduction[$8,000 in 2024 and 2025] while also saving for retirement. If you choose to contribute to the Roth IRA, you’ll pay taxes on that income now, but it will grow tax-free forever as long as you don’t withdraw any interest 澳洲幸运5开奖号码历史查询:within five years or until age 59½, whichever is longer.”

Rebecca Walser: There’s More to Tax꧅-Loss Harvestin𓄧g than You Think

“Many people think of 澳洲幸运5开奖号码历史查询:tax-loss harvesting at the end of the year to shelter investment gains,” says , principal and CEO of Walser Wealth Management. “However, don’t forget about the double tax whammy of equity distributions to charities that achieve two tax advantages. First, it counts dollar-for-dollar as a charitable deduction as long as you still itemize on 澳洲幸运5开奖号码历史查询:Schedule A. Second, it deducts the 澳洲幸运5开奖号码历史查询:fair market value (FMV) of the donation, even if that exceeds your basis.

“For example, if you bought stock in 2020 for $100,000 (so, a basis of $100,000) and꧋ toda♌y that stock is worth $250,000, you can donate the stock to a charity and deduct the $250,000 on your Schedule A itemized deductions, even though you never recognized the $150,000 gain as income and will never pay tax on that $150,000. Tax-loss harvesting is just the beginner’s club for tax strategy.”

The Bottom Line

There is a lot more to saving on your ta🌟xes than you might think. Financial professionals like the experts above can help you to recognize strategies that go beyond ordinary tax deductions and credits.

These strategies i﷽nclude donating equity distributions to charities to get double the tax benefit of your gift, and opening an IRA for a non-working spouse to get the tax deduction while also saving for retirement. It helps to have a good tax preparer or financial planner to help you find additional ways to save on your taxes.