3 Tax Free Income Strategies

No one wants to pay taxes. That's why a lot of people are looking for various ways to get some income without the need to pay taxes. So, what are some things that you can do that will give you some tax-free income? 

Roth IRA

One thing that you can do is to start a Roth IRA and keep donating to it. There are several good reasons to do this. One is your money can keep growing without incurring any taxes, unless you make an unqualified withdrawal, in which case you may have to pay some taxes on the withdrawal. Another reason is that you don't have to worry about an age limitation on contributions. You can contribute whether you are 30 or 80. Even if you are already drawing money from your account for retirement purposes, you can still turn around and put money back into your fund. Getting money out of your Roth IRA's distribution program generally doesn't count against your yearly income, which can help you keep Medicare/Medicaid as well as Social Security Payments. 

Short-Term Rentals

Another way to get some tax-free income is to rent out your house for short-term rentals. Generally, short-term means around 14 days of less. After 15 days, the rental money may turn into taxable income. If you choose to go with this method, then there are a few things that you are going to want to keep in mind. One of them is that you want to make sure that your homeowner's insurance company will cover renting out your home for a short-term lease. The nice thing is that it doesn't matter if it's going to be a primary residence or your vacation residence, you can do it in both cases. Generally, these short-term rentals won't count against you when it comes to residence requirements or your mortgage issues. 

Health Savings Account

A health savings account is a way that you can save money that can be used for your medical care, medication, and other medical needs. You may not be able to qualify to start the HSA, but it's worth looking into. 

If you are looking for ways to get some tax-free income, there are several ways that you can do it. You can combine several of those ways to get as much non-taxable income as you possibly can. If you need help setting up some of the strategies that you see, you can always go to an accountant to get some help. Contact a service, like Alternative Strategies Insurance Solutions, for more help.


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