KNOXVILLE, Tenn. — Paying taxes is a necessary evil, but there are ways to save money on your taxes.
First, put money in your 401K.
The money you send directly into your 401K from your paycheck isn’t taxed by the IRS. You also get that money matched if you have a 401K plan through your employer.
Second, invest money in an IRA account.
This helps you save for retirement and isn’t taxed going in—but there are limits. You will be taxed when you make a withdrawal.
The third invest in a Health Savings Account or HSA.
This money can be used on medical bills and the money is not taxed. There are limits on how much you can contribute to an HSA.
Lastly, if you are able, buy a house.
Yes, it comes with added expenses, but you are building equity and you can write off the interest you pay on your mortgage and your property taxes if you itemize your deductions.