Taking Charge of Your Taxes: Simple Moves That Make a Big Impact

Bring up the subject of income taxes and many people’s eyes glaze over. Yet taxes are a significant part of your financial life. Whether you like it or not, understanding how to manage them can lead to big savings — and better decisions.

Here are four key things to keep in mind:

1. You have more control than you think. Filing is mandatory, but how much you owe can shift depending on your choices. Contributing to a 401(k), for example, reduces your taxable income and builds your retirement fund.

2. Know the basics. You don’t have to become a tax expert. But before big financial moves like selling your home or stock, understand the tax implications. Timing alone can mean the difference between a tax bill or a break.

3. Don’t let taxes make the decision for you. Taxes are one part of the puzzle. If you're holding onto a stock just to lower your tax rate but risk losing value, it may not be worth it.

4. Keep your records in check. Good recordkeeping is key to deductions — and peace of mind if you’re ever audited.

Why do we pay taxes? Taxes fund essentials we all benefit from: defense, roads, public schools, parks, and even scientific research. Knowing this can make the process a little easier to digest.

👉 Want to reduce your tax burden while staying compliant? Contact Verity CPAs at info@verity.cpa or call 808.546.5026.