Increasing Your Spendable Income

What is After-Tax Income?

After-Tax Income is the net income after the deduction of all Federal, State, and Withholding Taxes. With Taxes rising, you don't want to be over paying your taxes and you want to be sure you are complying with the law. That is why I am going to layout a few strategies you can use to help you get more money in your pocket, at the end of the day. Lets Begin:

1. Adjust Your W-4 Exemptions

Getting a nice sized Tax Refund each year? Big refunds are commonly a result of having too much money taken out each pay day. By adjusting your taxes, you can boost your take home pay. Be sure to use the IRS Withholding Calculator to determine how much your actual withholdings should be.

* Need A Complete Guide On: How to Fill Out A W-4 Form? CLICK HERE

2. Adjust Your Health Plan

You might want to consider adjusting, or even getting rid of any Plans/Additional Programs that you are paying for that you don't need. Most times you may have a Low Deductible, but a High Monthly Bill. Consider trying a Plan that offers a High Deductible with a Lower Monthly Premium, especially if you are an individual who generally requires minimal Healthcare.

3. Look Into Tax-Managed Mutual Funds

What are Tax-Managed Mutual Funds? They are mutual funds available to Retail Investors. Tax-Managed Funds employ various Tax Saving Strategies. This Strategy can help you reduce Capital Gains and/or Offset your Gains with Losses.

4. Consider Owning ETF's

An ETF, or exchange-traded fund, is a group of investment securities such as stocks and bonds. Typically an Investor buys units of ETFs (kinda like shares) that provide access to the performance of all the fund’s holdings, in exchange for a small annual fee that’s automatically taken out of the ETF’s returns. From a Tax perspective, ETF's are generally more tax efficient than an Index Mutual Fund.

NOTE: Although You Can't Control Whether or Not Tax Rates Rise, You Can Control How and Where You Own Certain Investments That Help You Save More Money.        

Need Direct Help?

Are you curious about increasing your after-tax income and need assistance or you need other Tax/Financial Related Assistance, want to Save More Money each Quarterly, or you need help Creating a Financial Plan then give my office a call at 678-585-6580 or shoot us an email at [email protected] so that we can book a time to meet and see what we can do to help.?You can also Direct Message Our LinkedIn Page. Thank You For Reading