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Top tax reduction strategies that every adult should know

On Behalf of | May 3, 2021 | Estate Planning |

Connecticut residents can take advantage of many different tax reduction strategies each year. The sad part is that many of these individuals don’t realize the various methods that are available to them to reduce their tax burden. It’s time to listen up and take notes as the tips below will likely reduce your taxes if implemented correctly.

Claim business deductions

One of the best tax reduction strategies is to claim business deductions for your full- or part-time side hustle. Those who opt for picking up some rideshare fare or freelance writing gigs can deduct business expenses that they’ve incurred doing their side jobs. Some examples of business deductions include car mileage, office expenses, insurance deductibles, website fees and advertising.

Don’t forget the home office

If you’re like most people these days, you have a home office. You can actually deduct expenses that you pay for your office space in your home. You’ll need to take into account how much room your home office takes up to determine how to split house expenses like rent and utility fees. For example, you may find that you can deduct a fifth of your rent bill and utility bill. That may not seem like a lot at first. However, consider this deduction over 12 months throughout the entire year, and the tax reduction strategies become substantial.

Claim business travel expenses

When you decide to take your next vacation, plan some business activities to go along with it. When you invest some time working while on your vacation, you can claim a portion of the expenses for things like your airfare, hotel bills and so forth.

Taxes are something that all citizens have to deal with. By implementing the strategies that were addressed above, you can help to reduce your annual tax burden.