Comments on: 6 Tax Advantage Savings for Millennials

By: DC @ Young Adult Money

DC @ Young Adult Money — Sun, 20 Mar 2016 00:05:09 +0000

DistilledDollar That’s a huge savings, and I agree that most people don’t think in these terms. People love travel hacking but tax hacking may be a much more profitable thing to spend time on!

By: NoNonsenseLL

NoNonsenseLL — Sat, 19 Mar 2016 18:09:37 +0000

Great tips! I always do the 401K, HSA, non-deductible IRA and any deduction that is available.

I use TurboTax, and file my business taxes and personal taxes. That helps save money too.

By: DistilledDollar

DistilledDollar — Sat, 19 Mar 2016 16:50:22 +0000

Yes! This post sums it up so nicely! As a CPA who handles taxes all day, I’m always shocked that individuals don’t understand how much in taxes they pay vs how much they could pay.
The real benefit comes when you start to combine these tax saving strategies. The best combo that has helped me in recent years has been to put extra cash into my 401k INSTEAD of my student loan debt. This combo helps me save ~30% on income taxes & I get to deduct the student loan interest. The alternative is saving only ~5% on interest, so it was a no brainer for me.

By: practicalsaver

practicalsaver — Thu, 17 Mar 2016 20:18:16 +0000

I have used HSA for a very long time. It has helped me reduce my tax liability for the year. The best thing about HSA is that in the event of medical emergencies, I really don’t use my emergency funds because I have the money in HSA that I can use. Basically, my HSA is my emergency fund for medical-related stuff.

By: AbigailP

AbigailP — Thu, 17 Mar 2016 17:24:29 +0000

Yep, all of these are pretty useful. I do my own taxes, so I knew about them. The only caveat is that the charitable giving is only deductible if you itemize. Even some homeowners (including myself) don’t have enough to itemize.

By: DC @ Young Adult Money

DC @ Young Adult Money — Thu, 17 Mar 2016 05:40:30 +0000

jdonovanart Thanks for sharing! I hope this article helps at least one of them get a deduction they otherwise wouldn’t have received.

By: DC @ Young Adult Money

DC @ Young Adult Money — Thu, 17 Mar 2016 05:39:59 +0000

Andrew LivingRichCheaply Tax software is great for most people, but you’re right once taxes get a little too complicated it’s easier to justify consulting an advisor. =