A Tax Strategy for Low Income Families

If your total earnings put you in a low-income tax bracket, there is a tax strategy that you can form to help put more money into your pocket. Taking time to form a tax strategy will help increase the money that you make in each paycheck.
For example, did you know that most people overpay on their taxes? The problem with waiting for a hefty tax return is that you are basically giving the government a loan where they can invest your money and make a profit. Why not have a tax strategy where you use that money to increase your wealth? All you have to do is fill out your tax information again, including any new deductions. It’s a tax strategy that basically gives you a raise.
Another tax strategy to reduce your taxable income is starting a retirement fund. A 401K or other retirement savings is exempt from taxes as long as you don’t use it. If you use the funds early, you will be charged fees and taxes. As long as you are saving for retirement, you can decrease the amount of money that qualifies as taxable income. It is a great tax strategy to reduce the amount of money that you pay in taxes while saving you money.
Finally, include your health care costs in your tax strategy. Many employers offer flex plans where you can put aside money to pay medical bills. The money that you put into a medical flex plan and a health insurance plan is not considered taxable income. Many people think that they can’t afford a good health plan, but because your healthcare costs are taken out of your check before taxes, it is actually cheaper for you to spend money on insurance rather than attempting to payer more expensive health care costs.

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.