Ways to Save on Taxes When Buying Holiday Gifts
When it comes to the Internal Revenue Service (IRS) you owe what you owe!
The IRS collects their tax money based on two principles:
> How much you’ve earned
> How much you are paying out
Very simple. That’s why the first three months of the year, commonly referred to as ‘Tax Season” is so important. The United States government requires every US citizen to submit an annual filing that records how much money he or she has earned the previous year.
How Much You Earn
It can get pretty complicated when it comes to determining how much tax is owed based on the annual income because each taxpayer’s financial situation is unique. According to how many dependents he or she has, the amount of tax credits allotted, that gross amount will be calculated into an annual net amount of earnings. Depending on how high or low this net amount falls into the tax bracket that the IRS has formulated, that taxpayer may have money owed to them or may have to owe. This can be a smooth process, but it can also get pretty messy which is why there are tax relief services to assist with this!
How Much You Paid Out
The other way the IRS collects taxes is through commerce. Each state in the US has different sales tax laws. Massachusetts for one doesn’t require tax on clothes and New Hampshire doesn’t have any! Visit the Tax Foundation to learn which state collects sales tax and if so, how much?
How in the World Can I Save on Taxes?
The only way that you can really save on taxes is by reducing your purchase amount. This can be especially challenging during the holidays, but on the contrary, this is the time of year when almost everything is on sale! Most businesses are reducing the price of their products for two reasons:
- They want you to buy their stuff!
- They are trying to liquidate their annual stock to make room for next year’s inventory.
Either way, this works to your benefit! It’s all a matter of practicing self-control and re-thinking priorities when it comes to buying gifts for your loved ones.
With almost every product in the market, it is usually cheaper to purchase it online. Businesses can afford to reduce the retail cost of their product if the product is purchased directly from them. Most of the time, you are purchasing straight from the distributor, knocking out the 3rd party expenses for them.
Shop for Discounts
You don’t need to be a gifted mathematician to get this: The less you spend, the less the taxes will be! Therefore, it behooves shoppers to find look for the sales, coupons, and online discount codes. Take advantage of the popular ‘buy one, get one’ deals that most retailers have. If you can get two scented candles for the price of one, why not cross out two names on your gift list? Problem solved!
Helping You Save as Much as Possible
Success Tax Relief is a tax consultation service that is laser-focused on alleviating any tax issues you may have. We are also in the business of helping you avoid any tax problems! So if we can help you save money and reduce the amount of taxes you have to pay, we won’t think twice about supplying you with useful information to help you do it. If you are interested in finding out other ways you can manage your tax matters, don’t hesitate to ask us any question on our website or if you prefer, call us at 877-825-1179.