No one plans to pay more taxes than the law requires, but millions of taxpayers overlook valuable deductions that can add up to big savings. Set up custodial accounts for children. Unearned income includes interest, dividends, capital gains and other earnings from investents. Be aware that you cannot take the money back. Assets placed in a custodial account are current, irrevocable gifts that belong to the child now and always.
Assets placed in a custodial account are irrevocable gifts.
1 Unearned income includes interest, dividends, capital gains and other earnings from investments. Turn non-deductible debt into deductible debt. This is a good idea if you have outstanding credit card debt. All interest paid on credit card debt is non-deductible. Credit cards are a major financial drain because card vendors charge 10 to 20 percent interest, sometimes more.