Will you owe estate tax?

Sammy Says! The U.S. Tax code encourages many things. Some of them include: 1. Get educated. 2. Get a job. 3. Earn some money. 4. Don’t make too much. 5. Pay medical expenses. 6. Get married. 7. Buy a home. 8. Go green. 9. Have or adopt children. 10. Invest long-term. 11. Save for retirement. 12. Give some away. 13. Don’t get too rich.

One of the most often overlooked opportunities is the spousal IRA. A spousal IRA is a traditional retirement account a spouse can contribute to despite earning little or no income. Contributing to a spousal IRA may help a couple lower their taxable income, reduce their taxes, and save for retirement.

Someone might pay no tax after selling an investment for a gain. There is a 0% capital gains tax bracket. However, it is very common for someone to pay a 15% capital gains tax.

5 ways to lower taxable income besides donations:

1. Pre-tax retirement accounts like 401(k), 403(b), and 457

2. Health Savings Account (HSA)

3. Spousal Individual Retirement Account (IRA)

4. Tax loss harvesting

5. Specifying which shares to sell if selling stock