6 Brilliant Ways To Reduce Your Taxes in Retirement

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#4 Bunch Itemized Deductions

Another way in which you can reduce your taxes would be to bunch up your deductions, especially if your yearly deductions are close to the standard amount of deductions. As you generally write off the expenses you want to deduct in the same year when you will pay them, you can easily try to bunch them up and save more that way!

As an example, if you have had a medical intervention, any medical expense is deductable from the year you paid it. Thus, if you had the surgery at the end of the year and paid in December of that year, the deduction is for that year. Yet, if you pay in January of next year, then it is deductable for the next year, not the previous one!

Gathering most of your big deductibles for the same tax year will allow you to itemize one year and then claim the general deductions the next if your expenses are in the minimally deductible range. It is a pretty good way to reduce and save on your taxes if you need to.

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