With tax season upon us, it’s time to think about ways to reduce the burden the next time it’s time to settle up with the government. It takes a little planning, but it’s worth it. And yet, not everyone does it. According to fool.com, “the IRS believes that a full 20% of eligible Americans miss out on a tax break worth up to $6,318 each year.” Getting creative in 2018 could save you thousands!

Contribute to an IRA or 401(k)

According to USAToday.com, one of the easiest ways to reduce your 2018 tax bill is to deposit money into a traditional IRA or 401(k). In most cases, the money you put into either account goes in tax-free, and your associated savings are a function of your effective tax rate. For example, if you contribute $5,000 to either account, and your effective tax rate is 30%, you’ll save yourself $1,500 in taxes –  that quick.

Bonus:  According to Turbo Tax,

Give money to charity

Not only does giving to charity leave you with a sense of cheer and goodness, but it’s also good for reducing your taxes. When you donate money to a qualified organization, you’re able to deduct that amount on your tax return. Make sure to keep your receipt! You’ll need it to prove your contribution.

Track the miles you put on your vehicle

If you’re self-employed and use your vehicle for work purposes, it pays to keep a record of your business travels. One of the benefits of being a contractor is the ability to deduct mileage any time you use your vehicle to drive to an office, attend a meeting, or run business-related errands. You just need to make certain that you have an official log that keeps track of it all.

Open a flexible spending plan

Many employers offer flexible spending plans that let you contribute toward medical expenses pre-tax. Typically, these don’t count toward your taxable income, which means you can deduct more from your taxes!

Get educated or apply your education towards tax time

Current and former students have many deductions and credits that can be applied to their expenses regarding education. Paid student loan interest and tuition and fees can be claimed as deductions.  Students who are currently attending school (and meet eligibility requirements) can also access the American Opportunity Credit, which can cover up to $2,500 annually for four years, and the Lifetime Learning Credit, which can cover up to $2,000 per tax return.

However, if the problem this year isn’t about reducing your taxes but is about not having the available funds; then, perhaps, LendingPoint can help.

With a simple online application that only takes a few minutes, LendingPoint could show you funding options that could get you the money you need by the end of the next business day. Just seeing options won’t damage your FICO score. Apply today.