End Of The Year Tax Tips That Can Save You Money
Saturday will mark the end of 2016. A lot of us will say good riddance as we welcome in 2017 at the stroke of midnight on Sunday morning. There were a lot of not so good things that happened this past year. However, you still have time to take advantage of some tax breaks and loopholes that could make your tax burden for 2016 a little lighter.
Charitable donations are a great way to validate tax savings. It's a triple win as well. You get to clear out space in your home. You get a wonderful tax break. The charitable organization gets some much-needed items to help out those who are less fortunate.
It’s a great time to actually clean out your house because you got all these gifts from Christmas. You can actually give some of those things away for non-cash donations as well.
Mortgage insurance is going to expire. So if you want to make that mortgage payment before the end of the year, instead of paying it in January, you may be able to get that deduction. If you pay it in 2017, you’re going to lose that.
She also referenced deductions for higher education. You'll certainly want to take advantage of those if you're currently funding tuition for a kid in college. Rachel also suggested that you take a look at your personal retirement and health plans.
By funding your health savings account if you’re eligible to contribute and funding your IRA contributions as well, and you have until April 15 or the filing of your tax return to do that as well.
If you're not exactly sure what's available to you we suggest you visit a professional tax preparer or contact the Internal Revenue Service or the State Department of Revenue for free tax preparation tips. The first day to file your state and federal taxes will be January 23rd.