Savings Calculator

Why do I need to save for my retirement? After all, aren’t the government and my company going to provide for my retirement income? And, not only that, but I’ll be making so much more money in the future that I’ll be able to make up for lost time then.

It’s sad that many Americans think that providing for their retirement is somebody else’s responsibility. Savings rates have declined over that past decade and many people are pulling money out of their savings just to make ends meet.

One way to maximize your business profits is by reducing your taxes. Frequently, income and other taxes could be lowered significantly if only the taxpayer were willing to plan ahead. By taking some simple steps to rearrange your affairs, you could save a fortune!

1. Are You Splitting Your Business Income?

You may pay reasonable salaries to spouse or children through your incorporated or unincorporated business. If you are not doing so, you may be missing out on some real tax savings.

Concerned about the high cost of healthcare? Worried that your insurance doesn’t cover all your costs? Fortunately, a partial solution may be just around the corner. Since January 2004, taxpayers have had a tax savings tool called Health Savings Accounts, or HSAs. These HSAs may solve many of your healthcare cost problems.

W-2 Employees have tax options. Although they often feel left out of the tax-loop, those who work for W-2 payroll have a wide variety of options for saving money at tax time. The secret to getting the best tax benefits lies in knowing what your options are and using all the options available to you.

A taxpayer who is covered by a high-deductible health insurance policy may establish and contribute to a health savings account (HSA). The contributions the taxpayer makes are deductible in calculating adjusted gross income, so a taxpayer does not have to itemize deductions on Schedule A of Form 1040 to receive the deduction. Contributions made by an employer are not taxable to the employee.

It is a well-known fact that Americans are miserable failures when it comes to saving for retirement. Well, the government is offering tax credits to change this for some of us.

Tax Credits for Retirement Savings