TLDR: There are several kinds of retirement account options and many of them allow you to save cash while also taking a tax deduction. It's one of the best ways to build wealth in our current tax system. One of the most common questions I get asked when advising my tax clients deals with retirement accounts. Most taxpayers don't fully understand the benefits of retirement contribution deductions. Imagine! You can reduce your tax bill by setting aside money for your future self! Very few tax...

TLDR: The Home Office Deduction is a highly recommended tax deduction for business owners or freelancers as long as the meet they meet the qualifications. When meeting with new or existing clients of mine, I think I am asked about a home office deduction more than anything else. Because working from home has become increasingly common for entrepreneurs, freelancers, and other self-employed individuals, it's expected that they taxpayers would like to deduct the use of that space. However, the...

TLDR: Deductions can reduce your tax liability but not as much as tax credits do. In either case, focusing on deductions, credits, and business expenses at the right time of the year can lead to greater tax savings. I've spent years advising clients about their income taxes. The terminology can be confusing, and many taxpayers use terms like “deduction,” “credit,” and “expense” interchangeably. While they all have the potential to reduce your tax burden, they work in very different ways....