The Best Way to minimize taxes
Here are some easy ways to lower your taxes:
- Start a Roth IRA
Money you put in a Roth IRA grows tax-free, and you won't pay taxes when you take it out in retirement. You can open one as a teenager if you have earned income!
Source: IRS: Roth IRAs
- Track Your School Expenses
Keep receipts for textbooks, supplies, and computers. The American Opportunity Tax Credit can give you up to $2,500 back for education expenses.
- Save Money for College
Using a 529 college savings plan lets your money grow tax-free when used for education.
Source: SEC: Introduction to 529 Plans
- Start a Side Business
Having your own business lets you deduct expenses like your phone, computer, or even part of your internet bill if you use them for work.
Source: IRS: Deducting Business Expenses
Remember: Always keep good records and receipts. When in doubt, talk to a parent or tax professional about your specific situation.