Millions of people give to charity, which is wonderful! However, they often give cash each week, month, or year. That method can cost more! It’s often better to: donate appreciated assets, bunch donations, or contribute to a Donor Advised Fund.

Many people focus on reducing taxes for the previous year. Some take proactive steps to reduce their tax bill for this year. Very few proactively minimize their lifetime incomes taxes.

Will you owe estate tax? It may depend on your state!

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.

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