Last minute tax savings!
End of the year is almost here! You may be wondering how you could save a few more dollars on your tax return. Here are a few ideas that might help you before December 31st!
End of the year is almost here! You may be wondering how you could save a few more dollars on your tax return. Here are a few ideas that might help you before December 31st!
- Give to Charity: whether it’s that bag of clothes sitting in your closet, or a check you send to your local animal shelter, church, or food pantry, helping out your charity of choice may help your tax bill, too! Tip – for those that are required to take a distribution from their IRA before the end of the year, sending that directly to charity may be beneficial, too!
- Make an HSA contribution: if you have a high deductible health insurance plan, putting money into your HSA may help you save on your taxes, too!
- Plan timing of payments: for those self-employed individuals, sometimes paying up any business bills you have before Dec. 31st is a good idea. For others, if you have some extra income (that big Christmas bonus, for instance) maybe paying your property taxes, making an estimated income tax payment, or paying your mortgage early will help.
- Sell loser stocks: if you have had some stock sales that resulted in gains during the year, it might be wise to sell a few losers (that you want to sell anyway) before Dec. 31 to offset the gains. One caveat to this – you can’t buy them back in January!
As always, each person’s tax situation differs. Tax savings ideas are not one size fits all!