How to pay less taxes
An easy way to get started and learn the ropes is using tax software such as TurboTax to do your taxes. These programs are straightforward, inexpensive ($50-$100), and user-friendly; they are one of the most accessible programs I have ever used in any field. They have made what used to be an intimidating and complicated process straightforward and educational. The program has tutorials throughout the process in case you would like to learn how things work, and it makes recommendations depending on your tax situation. Understanding the tax implications of my behaviors has helped me make better decisions and plan how I spend throughout the year.
Stay organized throughout the year, have different folders labeled for each category of spending. If you're short on time, have someone help you add up and categorize all of your receipts; this is what takes the most time. Once you finish your taxes, you can pay $50 for TaxAudit.com audit insurance. This is a worthwhile investment. I buy this insurance every year and have had to use it when I was being audited twice. The company assigns you a retired IRS agent, and they help you through the entire process. If necessary, they attend meetings with the IRS on your behalf, meet with you, handle all communication, help you organize, and help you fix errors you may have made. I had one agent assigned to me for six months on the first audit and another for nine months on the second audit. We came out of both audits without paying additional taxes or any fines. The total cost was the $50 membership per year, and that's it.
The second service I would suggest, if your taxes are complicated or you just want a second opinion, is a tax review service that ranges from $50-$80 dollars, or you can find freelance tax experts on UpWork.com. I've also hired a CPA for $550 (same fee whether he does my taxes or reviews them) to review my taxes. In retrospect, it wasn't worth it; tax software is, and a tax review is usually enough to help you reclassify items to help you save more on taxes.
Try using the Hurdlr application. It helps self-employed people keep track of their earnings and deductions to save them on taxes. The more you can save on fees, the more you are basically increasing your income. Whatever field you are in, learn as much as you can about how taxes work. If you have an accountant or tax person, work with them to understand your charges and how you can change your behavior for the following year. Develop strategies and plan accordingly. This should guide investments and spending throughout the year.