Ah, taxes, that one word everyone hates to hear. I don’t think there’s anyone alive that enjoys actually paying taxes. I mean, I get why we need to do it, our taxes go back into the country to help fund various projects. It’s just annoying how us regular folk are always the ones paying the most tax, while the rich and famous are finding loopholes to keep their millions safe.
In fact, a hefty tax bill can mean your family ends up with a lot of expenses at the end of each year. This means you have to live by more frugal means, which can be uncomfortable and cause you to worry about money a lot. But, what if I said there were ways you could try and cut your tax payments, meaning you don’t spend as much annually? Here are a few ideas that are well worth looking into.
Double Check Your Pay Stub Every Month
One of the easiest ways you can chop a little bit off your tax bill is if you make sure to check your pay stub every time you get paid. It mentions on The Paystubs website that these pieces of paper show you how much tax you paid each month. Sometimes, there could be clerical errors that mean you accidentally paid more income tax than you should.
By keeping your pay stub handy, you can calculate if you paid the right amount. If it transpires that you’re paying more than you should, then you could be entitled to a tax rebate. This is where you get back all the money you shouldn’t have paid. It can be a welcome addition of funds for your family, and so many people neglect to do this. Don’t just assume you’re paying the right amount of income tax, make sure you – and anyone else that works in your family – double checks and calculates it properly.
Share A Family Car
There are many families out there that have a car for each adult. While this may seem like a smart idea – you don’t have to work around each other schedules – it means you pay more tax. You see, people have to pay car tax for every vehicle they own. So, if your family owns two cars, you’ve got to pay twice the amount of tax. Alternatively, if you share a car with your family, you can halve the amount you pay. It may seem like an inconvenience at first, but you’ll soon find that you get used to sharing a car, and the tax savings you make will be worth the extra effort!
Rent A House
If you own a house, you have to pay property tax for it. But, if you rent one, you don’t! For me, this is a smart choice if you can’t afford to pay for your house in full. If you still need to apply for a mortgage, then you’re essentially paying ‘rent’ every month anyway in mortgage repayments. So, if monthly payments are still leaving your account, you may as well rent and avoid property tax!
Try these three ideas if you want to reduce your family’s tax bill every year. You’ll be surprised at how much money you can save, which can be used for better things!