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Maximize Your Tax Refund

Tax Tips To Save You Money and Maximize Your Tax Refund

Sure the year is flying by, Halloween has come and gone, Thanksgiving is practically here, but there’s still a few ways you can increase your tax break and save money before the end of the year.

Tax Refund

Tax Refund – Your Miami Beach accountant, Manal Oliver, is here to give you all the right moves to help you take advantage of all you can do to keep more dollars in your pocket or business. Just make sure to take action before December 31, 2017, so you only have a little less than two months to maximize your tax refund. With Christmas just around the corner, it’s time to get moving!

Miami Beach Accountant Recommends Deferring Income If Possible

Income is only taxed in the year you get it, so if you’re getting a year-end bonus you may be able to defer it to next year, just ask your employer or talk to HR to see if it’s a common practice where you work. If you’re a freelancer, consultant or contractor, deferring income may be easier since you can just delay your invoice until late December which means you’ll only get payment (income) next year. Your Miami Beach accountant reminds you to only defer your income if you think you’ll be in the same tax bracket the following year, since you don’t want to be hit with a higher tax bill in 2018.

Contribute The Maximum Amount to Your 401 K

Contribute The Maximum Amount to Your 401 KIf you haven’t hit the maximum amount you can contribute yet, just increase it through the year end. You have until April 17th of this year to contribute to an IRA for 2017 tax year, but the sooner you put money into that account the sooner you grow it tax-deffered.

 

If you’re under 50 years old, you can contribute up to $18,000, and if you’re over 50 years old you can contribute up to $24,000 for 2017. Learn more about the IRS’ retirement-related items for tax year 2017.

Cover Your Health Care Costs With an HSA

tax refund healthcare costsHave your heard of health savings accounts or flexible spending accounts? HSAs and FSAs allow you to efficiently pay, on a pre-tax basis, certain medical expenses that aren’t paid or only partially paid by insurance.

 

A health savings plan is kind of like a personal savings plan to help those with qualified high-deductible health plans save money on out-of-pocket medical expenses including doctors’ visits, vision, dental care and even prescriptions. Your Miami Beach accountant reminds you that you don’t have to spend all the money in the accounts every year and you can also invest your HAS balance in a mutual fund for example so it can grow into more money over the years.

Make Tax-Free Gifts As a Wealth Transfer Strategy

You can give up to $14,000 to whomever you want and as many people as you want and not have to apply it to your lifetime federal gift and estate exemption of $5.49 million. Paying it forward and giving back has never felt so good, right? Typically, the recipient of your gift also won’t have to pay taxes on that income either, regardless of amount. Making a tax-free gift is great for parents and grand-parents, especially during the holiday season.

Sell Investments That Are Not Making You Money

If you’re holding onto stocks, mutual funds or any other underperforming holdings that are creating losses, it may be time to use these to offset any taxable gains. Plus, your Miami Beach accountant reminds you that if your losses are more than your gains, you can use up to $3,000 of excess loss to eradicate other income. For more than $3,000 in losses, just carry it over to next year.

For more help with your tax refund, what qualifies as deductions and any other year-end accounting advice, reach out to your Miami Beach accountant, Manal Oliver at 305.868.7620. You can count on her tax return preparation expertise for your maximum tax benefit. From small business owners to freelancers and anyone in between, Manal Oliver has helped countless individuals make the very most out of their income.
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