The end of the year is approaching, and now is the time for some last minute tax planning before it is too late. Almost every time a financial transaction is made it has an impact on your taxes. Here are some things to look out for and consider:
Don’t hesitate to ask questions. If you think that there may be a tax or financial impact, then just ask us.
Take advantage of employer benefits: This includes contributing to your retirement plans, flexible spending accounts (FSA), and dependent care accounts. By contributing to these accounts you save not only income taxes, but sometimes payroll taxes as well.
Make Your Estimated Tax Payments: This usually applies to business owners and retirees. If you don’t make quarterly estimated tax payments when required, then you will most likely receive penalties. Sometimes, you can get around this by having extra taxes withheld from your spouse’s paycheck or from pensions and social security.
Obtain a Receipt for Donations: It is likely that you have donated much more than you have realized, especially when you donated household goods or clothing to a charity. Make sure the organization provides you with a receipt, and also make sure to write down what you donated and the value. If you wait until tax season, you may not remember what you donated, or even have a receipt, which is a requirement.
A little planning and organization go a very long way to save taxes and money. Don’t wait until it’s too late.