8 Tax Tips You Should Definitely Take Advantage of This Year

6. Optimize your investments in order to earn income taxed at a lower rate

Investment income can be taxed at a lower capital gains rate than income from wages. As a matter of fact, in some cases, the capital gains rate is as low as 0% so you’d pay no income on taxes earned from investments.

However, make sure you’re taking advantage of the chance to earn income taxed at this low rate by making investments. And of course,  be smart about it when you sell investments because low capital gains tax rates are generally available only on investments held over the long-term.