1. Open an account for health savings

If you’re lucky enough to have an eligible high-deductible medical plan, the first way you can reduce the amount of taxes you pay is by opening an account for health savings.

We’ve talked to a few certified public accountants to get the information we needed for this article, and they told us that the money you would’ve normally paid to the government will never get taxed if you spend each penny on medical expenses.

Moreover, people who contribute to these sorts of accounts are offered a prompt tax deduction as well as tax-deferred growth. Besides that, they can also withdraw the money without being taxed if they plan on using it for qualified medical expenses.

And at the end of the year, if there’s any balance left, the good thing is that it can roll over endlessly, just like the assets you’d have if you’d opened a retirement account.