Including Tax-Free Income in Your Tax Strategy

You have probably heard the saying that there are two things in life that you can’t avoid: death and taxes. There may not be a way to get out of death, but with the right tax strategy you can avoid paying excessive taxes. One tax strategy that can save you a lot of money is simply to earn tax-free income. Tax-free income probably sounds like music to your ears, and means exactly what the phrase indicates. The government will not charge you for specific uses of your money, and you can actually use your tax-free earnings to knock down some of the other places where you pay taxes.
Some of the most popular types of tax-free income that you can incorporate in your tax strategy include selling your house, saving money for your children’s education, putting your money into tax-free investments like municipal bonds, receiving health insurance from your employer, and spending a certain percentage of your salary on out-of-pocket health care costs.
You may be asking yourself how a tax strategy that includes tax-free income will help you get out of paying taxes. The answer is actually quite easy. If, for example, you sell your house during the year, you can take the gain from the sale of your home and deduct it from your taxes. The law states that you can deduct up to $250,000 from the gain of your home from your taxes as long as you have lived in the house for more than two years. It’s a tax strategy that puts money in your pocket.
Tax laws can be difficult for anyone, and if you really want to develop a tax strategy that will suit you or your business, hire a professional. The initial investment will actually be profitable for you because you will work with someone that is fully versed in tax law and the use of tax-free income.

Karla Dennis

As seen in Forbes Magazine, Karla Dennis is an expert tax and business strategist. As an enrolled agent, Karla is licensed to represent taxpayers in all 50 states. She holds a Masters in Taxation and Business Development and is the author of two books, Tax Storm and Against the Odds.

Karla, CEO of consultancy firm Karla Dennis And Associates, Inc.™, has saved her clients thousands of dollars and has been featured in various media outlets such as Forbes, MSNBC, KTLA, Yahoo! Finance, and SmartMoney, marking her as the ultimate tax expert.

As of 2014, Karla became the new host on the “Mind Your Business” radio show, KTLK AM 1150, sharing her financial and business knowledge with the greater Orange County and Los Angeles areas. As a supporter of women’s rights and issues, Karla is part of the Women Network, an organization built to educate and mentor women. In addition, Karla is the radio host for Women Network Radio, a show that aims to uplift and empower women of all walks of life.