Tax Planning to Reduce Total Income for 2019

A taxpayer’s adjusted gross income (AGI) is one factor that determines their total income tax. Taxpayers who plan today can  lower their AGI.

Here are a couple things taxpayers can do now to lower their AGI:

Make Contributions to a Health Savings Account

Pay student loan interest

Contribute or Increase Retirement Contributions

• Retirement savings can also lower AGI.
  • Contributing money to a retirement plan at work like a 401(k) plan can reduce a taxpayer’s AGI.
  • Investing in a traditional IRA plan is another way to save for retirement and lower AGI.
  • Self-employed SEP, SIMPLE, and qualified plans are also retirement options that can lower AGI.