Official: Wells Fargo confirms the rumors and your wallet will thank you

Wells Fargo has made an announcement to millions of customers in the United States and has activated an alert. The banking institution reveals clear guidelines to achieve better tax savings and pay less in taxes. If you want your finances to go further and your wallet to benefit from this, the following will interest you.

Wells Fargo has published a simple guide with recommendations on how American families can reduce their tax bill. The key is knowing where to put your income and which accounts to use. This is a basic and effective strategy to save and pay less in taxes. 

If you want to pay less in taxes, Wells Fargo tells you how to do it

The first step is to take advantage of retirement accounts with tax benefits. Wells Fargo advises increasing contributions to traditional 401(k) or IRA accounts, where the money goes in before taxes and reduces your taxable income.

They also recommend considering Roth accounts, where future withdrawals are tax-free. This balance is good for your finances because it lets you pay less today or tomorrow, depending on your situation.

Another essential tip is to plan charitable donations well. Making donations to recognized organizations lets you deduct those amounts and, if you donate appreciated assets like stocks, you save on capital gains taxes.

Importance of 1099 forms: Take note as soon as possible

Wells Fargo also highlights the importance of understanding 1099 forms well. Many customers don't know they can report capital losses to reduce taxes. Getting informed in time about how and when the documents will arrive is essential. If you have questions, using the “Tax Center” and consulting your Relationship Manager or tax advisor can make a difference.

But there's something essential to save your wallet: choosing the right type of account according to your income and goals. If you can choose accounts with tax benefits, do so, Otherwise, at least combine several strategies to make the most of the exemptions available. It's a simple step, but its effects can be dramatic.

Other tips you shouldn't miss

Wells Fargo highlights other good practices. Timing asset sales, for example, generates savings if you keep investments for more than one year to get more favorable rates. They also recommend using losses to offset gains, up to $3,000 per year and with the possibility of carrying them forward to future years.

The government's response to these initiatives has been positive, since many of the recommended tax tools are supported by federal regulations. There aren't any additional changes, but the key is for customers to know about them and use them.