One of the most popular pastimes in America today is complaining about taxes. However, what many people fail to realize is the fact that most individuals and families have a great deal of control over how much they’ll have to pay in taxes. There are some limits at the higher end of the income scale as to how much people can deduct from their taxes, but the vast majority of Americans can take steps to limit their taxable income. Harvest Losses Anyone who invests regularly will eventually incur a loss. Whether you’ve invested in a single company’s stock, a mutual fund or an ETF, there are years that will not be kind to you. While no one likes to lose money, it’s possible to use a loss to cut your taxes. Taxpayers are able to deduct up to $3,000 from their adjusted gross income for any capital losses they experienced over the past year. Any losses in addition to $3,000 can be carried over to future tax years. The amount you’ll be able to save on your taxes is tied to your marginal tax rate. For example, if you’re in the 12% tax bracket, you’d save $360 in taxes by harvesting the maximum loss. If you’re in the highest tax bracket, which is currently 37%, that savings would hit $1,110. Max Out Tax-Deferred Accounts Another great way to save money on your taxes is saving through a tax-deferred retirement account. These accounts include traditional IRA, 401(k), 403(b) and 457 accounts. By making sure that you elect to save your money before taxation, you’ll exempt that income from taxes in the year you save it. If you’ve not yet reached age 50, you can save up to $6,000 in an IRA as of 2019. If you’re in the top tax bracket, this means you’d cut your tax bill by $2,220 by maxing out an IRA. If you’ve hit age 50, you can save an additional $1,000, which would cut an additional $370 from your tax bill if you’re in the top tax bracket. Depending upon your age, the other tax-deferred accounts noted above have limits of $19,000 and $25,000. Maxing these out will save you thousands in taxes. If you’re near the median income with children, saving in tax-deferred accounts and taking advantage of capital losses can provide you with a very small tax bill. In fact, you may have no legal requirement to pay federal income tax if you play your cards right. It’s a good idea to start planning for taxes at the beginning of each new year. Every dollar you save on your tax bill is a dollar that can go toward investing and building your nest egg. Securities offered through Sanctuary Securities, Member FINRA and SIPC. Advisory services offered through Sanctuary Advisors, LLC, an SEC registered investment advisor