- You are legally allowed to rent out your home for 14 days or less, without having to pay the IRS anything! The best part is that doing this won’t do anything to your mortgage or property taxes. Go on vacation, and let someone else live in your home for a couple weeks! Call Airbnb now and see what they could do to help you earn something extra!
- Moonlighting is another fantastic way to add some more dollar signs to your bank account. The first couple grand of your side business will most likely be eaten up by different expenses on your taxes will keep you from owing anything! This is a great way to try out one of those dreams you always thought were too far from your reach. Dream on!
- Another added bonus to owning your own side business is that you can hire your teenagers as employees to help out, as long as you pay them a decent wage. The payroll is deductible on your taxes, and will lower what you owe even more. You will have to pay medicare and social security taxes, however.
- Municipal Bonds are another way to earn some tax free dough. If you have the money to spare, and are patient enough to wait, you should speak to whichever bank you currently hold an account with. Be sure to ask lots of questions, because there are a couple things that mean you could be taxed on your earned interest.
- New Accounts are another way to earn extra money on the side. Many newer banks are enticing customers to switch to them by offering a bonus like $150 after three months of good standing. Small amounts like that aren’t really income,, they’re mostly gifts which are tax free. Who knew banks were desperate enough to give you money just to open an account with them. Some don’t even mind if you close the account a few months after getting!
Trying out a few, or all, of these things would give you a boost without having to dump it all back into the government machine that is our IRS.
William Doonan is a tax law and legal expert in Bronx, NY.