It's never too early to start thinking about next year's tax bill, and what you could deduct. Contributing to a tax-deferred account allows you to deduct contributions from your income, which will help you reduce your taxable income and save on your tax bill. After the $130,000, the Social Security percentage disappears, and you pay Medicare taxes (2.9%) on your entire income. Read more: 5 changes to expect when you file your tax return this yearOn a $150,000 profit, you will end up paying more than $20,000 in Social Security and Medicare taxes in addition to income taxes, noted Amedian. Contribute to a health savings account (HSA)Certified Public Accountant Riley Adams, who also blogs at Young and the Invested, wants to remind taxpayers it's never too late to open a health savings account, or HSA.

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Persons: It's, —, it's, whittle, Dave Du Val, You'll, Du Val, Emil Abedian, Read, Max, Megan Gorman, Gorman, Riley Adams Organizations: Service, Internal Revenue Service, EA, Social Security, Social, Corporation, IRS, Financial Management, Worth Tax, Financial, Young Locations: Plenty