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 – 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
If 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.
Cover Your Health Care Costs With an HSA
Have 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.
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.
