As a citizen of a country, you are bound to pay Personal tax Calgary. There are times when you feel pinched by the fact that a large amount of money you are making is going away from you in the form of taxes. You wonder whether there is any method or trick through which you can reduce your taxes.
The good news is that there are several legal methods through which you can bring a reduction in the amount of money you pay as tax. If you wish to save up on personal tax in Calgary, you should check out the website www.versatileaccounting.ca.
Here are some of the ways in which you can reduce your taxes legally:
Study Further on Credit
If you want to take a break from your professional career and do higher studies, you should consider getting a credit. The government provides credits to compensate for the costs involved in higher education. The tax opportunity given by the government can be availed of during the first four years in college. The maximum credit offered to each student varies from one state to another. The overall amount is deducted from the tax you are supposed to pay the government.
Home Office Deduction
When you have a side income coming in from somewhere or work for yourself, you should consider applying for the home office deduction. People, whose house doubles up as their office, can apply for this scheme. To avail of this deduction, you will have to use a particular space regularly to conduct your business operations. As per the law, this office area must constitute one-fifth of the living space of your apartment.
Health Savings Account
Those who are in possession of a high-deductible medical plan can put some money into their health savings account regularly to save up on tax money. It proves to be one of the most effective ways to bring down taxable income. When you spend your money on medical expenses, it does not get taxed. Depositing your money in these accounts helps you avail of tax reductions almost immediately.
Business Reductions
Those who identify themselves as self-employed individuals get to avail of a variety of tax deductions. Even if you are an employee of a particular company, doing a side business will help you earn a little extra money and save some cash while paying taxes. Even taking up freelance projects from time to time can help in this regard.
Retirement Account
If you are looking for one of the most convenient ways to reduce your taxable income, then you should open a retirement account. The contributions you make to IRA accounts will eventually be deducted from the taxable income and you will have to pay less Personal tax in Calgary. Till the time you retire, all the money you deposit in your retirement account will continue to grow tax-free.
John Healar is an author of this article.To know more about Personal tax Calgary please stay with our website:versatileaccounting.ca
No comments yet