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How taxes affect your salary and what you can do to pay less

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Understanding the intricacies of federal, state, and local taxes can significantly impact your take-home pay. By exploring common deductions, credits, and strategic financial planning, you can effectively reduce your tax burden.
The article from MSN discusses how taxes significantly impact your take-home salary and offers strategies to minimize tax liabilities. It explains that federal, state, and sometimes local taxes, along with Social Security and Medicare, reduce your gross income. Key points include understanding your tax bracket, which determines the rate at which your income is taxed, and how various deductions and credits can lower your taxable income. The article suggests several tax-saving strategies such as contributing to retirement accounts like a 401(k) or an IRA, which can reduce your taxable income; taking advantage of health savings accounts (HSAs) or flexible spending accounts (FSAs) for medical expenses; and itemizing deductions if they exceed the standard deduction. Additionally, it mentions the importance of tax planning throughout the year, not just at tax time, and the potential benefits of consulting with a tax professional to navigate complex tax laws and find all applicable deductions and credits.

Read the Full MiBolsilloColombia Article at:
[ https://www.msn.com/en-us/money/personalfinance/how-taxes-affect-your-salary-and-what-you-can-do-to-pay-less/ar-AA1BtU7F ]