End of year tax tips
Adjust your withholding: A tax refund means you overpaid the government throughout the year, instead of putting that money to better use for yourself. The best course is to adjust your withholding so your tax payments will match your actual tax liability.
Bonus Depreciation: This is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as machinery, rather than write them off over the "useful life." The rest will still be depreciated, but this is an accelerated cost recovery option.
Pay off medical bills: Changes to the tax law this year allow you to deduct more of those unreimbursed medical care expenses.
Educational Expenses: Paying for a kid in college or other education-related expenses? Grab your receipts and your 1098s – there could be a tax credit waiting for you. Those saving for college via 529s, consider maxing out allowable contributions.
Tis the season of giving: If you’re itemizing, make a donation to your favorite charity before the end of the year
Harvest losses: Did you make gains on stock sales? If so, sell off the under performers for a loss to offset those gains.
Plan for Retirement:Call your financial advisor and max out those contributions – they’re tax free!
Keep those receipts: While it’s a pain in the neck, keep meticulous records and receipts if you want maximum write-offs.
Call us! There have been many changes to the tax law this year, so before you make any major changes, or if you have questions about how to make the law work for you, call us. We’re here for you.