Some Techniques
1. MAXIMIZE CONTRIBUTIONS TO TAX-ADVANTAGED ACCOUNTS
One of the most effective ways to reduce taxable income is by contributing to tax-advantaged accounts, such as:
- Health Savings Account (HSA): If you have a high-deductible health plan, contributing to an HSA allows you to save pre-tax dollars for medical expenses.
- 529 College Savings Plan: Contributions to a 529 plan grow tax-free and can be withdrawn tax-free for qualifying education expenses.
