Did you accrue foreign taxes to a country outside of the US but are subject to US tax on the same income? Did you know that you may be able to qualify for either a credit or a deduction on those taxes? If you meet the following, you might qualify for a Foreign Tax Credit.
-The taxes must be imposed on you
-You must have paid or accrued the tax
-The tax must be the legal and actual foreign tax liability
-The tax must be an income tax
Everyone always wants ways to lower their tax liability. It keeps more money in your pocket, making it easier to reach your financial goals.
But you might feel like you’ve minimized your taxes as much as possible with a 401K or IRA, charitable contributions, and itemized deductions, but there’s one more way – a Health Savings Account.
Tax time is almost upon us again, meaning it’s time to look at your finances and see where you can intentionally spend money before the year ends to lower your taxes come April 15th.
It might sound crazy to spend money to lower your taxes, but it’s a great strategy for business owners. Here are five simple ways you can reduce your tax liability this year.