No one likes paying taxes. And the more you make, the more you pay.

The truth is that high income earners need high income tax strategies – unless they like parting with their money.

Proper tax planning can save you big during tax season. Plus, there can be other great benefits too.

Here are five high income tax strategies you can use to save big.

1. Make Charitable Contributions

Philanthropy is more than a noble cause – it’s a way to save on your taxes. If there’s a cause you’re passionate about supporting and you want to deduce your taxable income, charitable donations are a great way of doing both.

While cash is a common donation, you can also donate art, property, stocks, or real estate.

As with all expenses, keep your receipt for a record of your donation.

2. Max Out Your Retirement Accounts

One of the best tax planning strategies is also good for your future. You can deduct your contributions to your retirement accounts.

Up to $20,500 in deductions can be deducted towards your 401k or 403b plan. But that’s just one retirement plan. You can contribute an additional $6,000 ($7,000 if you are 50 years old or more) to an IRA. You can check out the IRS site for a full list of contribution limits.

If you’re looking to reduce your taxable income why not set your future self up for a better retirement by maxing out your retirement contributions?

3. Use HSAs To Your Advantage

Another great way to save on taxes and set your future self up for success is with an HSA, or health savings account.

Why are HSAs so good?

They have three distinct tax advantages:

• Contributions are tax-deductible
• Money grows tax-free
• Withdrawals are tax-free for qualified medical expenses

Plus, if you’re over 65, withdrawals from an HSA for any purpose are tax-free.

4. Consider Cash-Value Life Insurance

If you have maxed out your retirement and healthcare savings and are still looking to save, consider a cash value life insurance policy. Cash-value life insurance is a form of permanent life insurance. It lasts for the lifetime of the holder.

A cash value in life insurance usually earns interests or other gains. It grows tax-deferred. Your premium payments go towards policy fees, insuring you, and the cash value.

Due to the cash value, the premiums for this type of insurance are usually higher. However, the cash value portion will earn interest over time, gradually increasing.

Cash-value life insurance policies may even allow for loans to be taken from the cash value portion.

5. Take Advantage Of All Of Your Tax Deductions

Finally, you need to take advantage of all of your tax deductions. Tax deductions are expenses that are deducted from your taxable income. This reduces your tax liability.

There are plenty of deductions for W2 employees. Some, like charitable contributions, we’ve already covered.

If you have a business, you have even more options. Software subscriptions, office supplies, business debt, and travel expenses are some of your options.

You can even write off a portion of a vehicle purchase. Heavy vehicles like SUVs, pickups, and vans can qualify if they are used for work. If you’re not sure if your vehicle qualifies for a deduction, you can check out a Section 179 Vehicle List online.

High Income Tax Strategies

There are a lot of different tips and tricks you can use when it comes to tax planning and reducing your taxes. Many of these strategies, such as maxing out your retirement contributions and using an HSA can also set you up for future success.

For more high income tax strategies and financial news, check out the rest of our site.