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“I am proud to be paying taxes in the United States. The only thing is I could be just as proud for half of the money.” - Arthur Godfrey
Taxes are probably the single largest expense facing Americans each and every year; and if the Bush tax cuts aren’t extended, it could get even worse for the highest earners. With a little more than one month until some potentially large tax increases take effect, there is still time to consider solutions to reduce your taxes.
One possible solution is using tax credits. Tax credits are more valuable than tax deductions because they work like a coupon to reduce federal income tax. One dollar of credit eliminates one dollar of tax. The US government began authorizing tax credits in 1986 to stimulate private investment in affordable housing for senior citizens and families of modest means.
Who should consider investments in tax credits? Below are a few common situations that could make tax credits suitable:
Please give me a call if you would like to discuss possible year-end tax strategies.