Tag: reducing Modified Adjusted Gross Income (MAGI)

When it comes to standard deductions and itemized deductions, reducing Modified Adjusted Gross Income (MAGI) is essential for lowering your taxable income. By reducing your MAGI, you can take advantage of tax credits and other strategies to maximize your tax deductions. Strategies to produce MAGI savings are often tax-advantaged, like contributing to a retirement plan or designated college fund, or choosing investments that are exempt from federal tax and offer preferential long-term capital gains treatment. The right combination of investment strategies can help you maximize your tax savings and put you on a sound financial footing.

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Reducing Modified Adjusted Gross Income in Forex Trading

Benjamin Gentry

brokers

Reducing your modified adjusted gross income (MAGI) is an effective way for forex brokers to mitigate their tax liability. To do this, forex brokers should consider taking advantage of certain deductions and adjustments, such as the foreign earned income exclusion, the foreign housing exclusion and deductible tax expenses. Additionally, brokers should investigate setting up a retirement account, such as an IRA, to reduce their MAGI and take advantage of tax-deferred growth. Finally, forex brokers may want to investigate deferring income and gains to a later tax year as another way to reduce their MAGI and save money on taxes.