5 ways to save for taxes

1. Estimate your tax liability

Before you can start saving for taxes, you need to know how much you will owe. Use tax calculators or consult with a tax professional to estimate your tax liability for the year.

2. Set aside a percentage of your income

Once you know how much you will owe in taxes, set aside a percentage of your income every time you get paid. This can help ensure that you have the money available when it’s time to pay your taxes.

3. Use a separate bank account

Consider opening a separate bank account specifically for your tax savings. This can help you keep track of your savings and avoid accidentally spending the money on other expenses.

4. Make estimated tax payments

If you are self-employed or have other types of income that are not subject to withholding taxes, you may need to make quarterly estimated tax payments to the IRS or your state tax agency. Be sure to include these payments in your tax savings plan.

5. Keep track of your expenses

Keeping good records of your expenses throughout the year can help you maximize your deductions and reduce your overall tax liability. Be sure to save receipts and other documentation of your expenses.

Remember, it’s always best to consult with a certified public accountant such as Clinton & Associes for advice specific to your situation.