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In the USA there are multiple incomes such as w2 and 1099 income. How should I file taxes smartly?


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1. Invest in tax-advantaged accounts. Investing in tax-advantaged accounts such as a 401(k), IRA, or Health Savings Account (HSA) can help reduce your taxable income.

2. Take advantage of deductions. Make sure you’re taking full advantage of deductions, like the standard deduction or itemized deductions.

3. Claim tax credits. Tax credits are a great way to reduce your tax burden. Common tax credits include the Earned Income Tax Credit, Child Tax Credit, and Education Tax Credits.

4. Utilize tax software. Tax software can help you quickly and easily file your taxes and make sure you’re taking advantage of all the tax breaks you’re eligible for.

5. Consider hiring a tax professional. If you have multiple sources of income or are self-employed, it may be beneficial to hire a tax professional who can help you maximize your deductions and credits.

 
 
 

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