Tax Savings Advice

Tax savings can be achieved if you invest in a 401k plan, own a business and have a flexible spending account. It is important to check with a certified public accountant or tax expert to get advice on tax savings allowed by the Internal Revenue Service.

Invest in a 401k Savings Plan

• If you invest in a 401k savings plan, you can save on taxes in two ways, according to the Resorts 360 website. First, any money you place in a 401k is not subject to income tax. Second, the interest on money placed in a 401k is not taxed until the money is taken out of the account.

Save Through Business Ownership

• Owning your own business provides many tax-savings opportunities. To get favorable tax treatment, the business must be established to make a profit. Although a business doesn't have to make money, you must be able to show that you have expertise in the related business area.

  If you operate a business from your home, all of the health insurance premiums can be deducted, according to the website Wife. In addition, the percent of space you use in your home for your business can be a basis for proportionally deducting a percent of your mortgage and utility bills.

Sign up For a Flexible Spending Account

• According to Kiplinger, a flexible spending account allows you to pay for medical expenses for next year's medical expenses with pre-tax dollars. If you don't use the money in that account by the end of the year, however, you lose that money.

Use Green to Save Green

• Invest some money in such energy-savings approaches as installing insulation in your home. Also, if you need appliances, other electrical equipment or a gas boiler, see if you can receive a tax credit for that. The federal government enacted a law called the Federal Tax Credit for Energy that includes energy efficiency tax credits for certain purchases.

Reduce Real Estate Taxes by Reassessing Your House

• Thirty to 60 percent of properties in the U.S. may be over-assessed, according to the CNN Money website. Consider hiring a firm that specializes in investigating and reducing real estate taxes by identifying an over-assessment and proposing a new assessed amount. Most of these firms work on a contingency. If they save you money, you pay them a percent of the annual savings.