A Beacon Press And Dominick Sartorio Bulletin:Last Minute Tax Tips Make Pretax Deductions Work For“Most employers allow workers to deduct money for basic expenses before they pay taxes on them.” stated Dominick Sartorio
By: Beacon Press April 13, 2011 - PRLog -- “Most employers will allow workers to deduct money for certain basic expenses before the employee pays any taxes on them” stated Dominick Sartorio. Some of these pretax withdrawals such as deposits into a 401(K) account and health insurance programs are more well known to workers. However, there are quite a few less-discussed, less-known and under-utilized withholding options that may be available that you can use to cut your tax bill. Some of these options may include the ability to deduct money for child care, transportation expenses, parking permits, dental care, eye care and even tuition. Workers can even pay for long-term care insurance that will provide for them in case of disability.
“These are simple, effective, legal ways to slash spending on non-negotiable costs like child care, dental work and transportation” There is an immediate value to these types of deductions: By pre-allocating funds to those basic necessities, an employee can avoid paying taxes on money that they were going to spend anyway. And to take things one step further, these pretax deductions can also cut the state, federal and FICA taxes that a worker may pay on the rest of their money. Depending upon the amount that is actually set aside, it is very feasible that someone could shift themselves into a lower tax bracket, greatly reducing their overall tax burden. Needless to say, the potential savings vary greatly, depending upon the amount of money that you deduct and the size of your salary. With thousands of dollars potentially at stake for someone, it is definitely worth the time and effort to speak with someone in your employer's human resources office about what pretax deductions may be available and right for you. "As always, everyone’s individual situation is different. Seek the advice of your tax professional on how this may affect you" stated Dominick Sartorio . ---- U.S. Treasury Circular 230 Notice: Any U.S. federal tax advice included in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal tax penalties. The information contained herein was prepared from public documents for general informational purposes. Its contents should not be construed as professional advice, and readers should not act upon the information contained herein without consulting a professional. This information is presented without any representation or warranty as to its accuracy, completeness or timeliness. Transmission or receipt of this information does not create any relationship. Electronic mail or other communications cannot be guaranteed to be confidential and will not imply nor create any relationship. # # # An accomplished VP/Sales and CEO executive who has brought numerous companies to record profitability, End
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