Tax Preparation Tip: 6 Ways the Rich Pay Less Taxes (and so can you)

6. Insurance Adjustments

There are some forms of insurance that are legitimately tax deductible, and the two major ones are:

  1. Health Insurance for the self employed – Even if you file as self employed or have your own corporation, if you shell out of your own pocket for your health insurance, you are eligible to deduct that from your taxes.
  2. Whole life insurance – Unlike typical term life insurance that is set in stone and expires after so many years, whole life insurance lasts for the policy holders entire life, even if they break a Guinness World Record by living for a long time. This form of insurance is great for those who can put away a few thousand dollars per year, because that accrues in value, has an investment component, and is a great deduction during tax preparation.

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