The new year is approaching and so is tax season. Are you looking for ways to reduce the taxes you owe or boost your tax refund? A CPA can help. Check out these end-of-the-year tax tips from Martinson & Carter CPAs in Rock Hill, SC:
- Postpone income and bonuses: Try to delay bonuses and additional income until the start of the new year. Failing to do so could increase your tax bracket next year. Ask to see if your company allows you to do this.
- Get more deductions: Gain more deductions before the year is over. Donate money to charity or buy tools you can use for your business.
- Start “loss-harvesting”: Consider selling off bad investments, such as failing stocks, before the end of the year.
- Fund your retirement account: Use this time to fund your retirement account or 401(k) contributions. Every little bit you can put in now will pay off later – and may have a positive impact on your 2017 tax returns.
- Avoid giving your children stock: Watch out for the “kiddie tax” that comes with giving your children stock. You may have good intentions, but to the IRS it looks like you’re trying to pass your tax bill to your kids.
- Make IRA distributions before the deadline: Make sure you’re continuing to put money into your IRA account. Don’t wait too late to make a distribution. This can cause you to get a penalty.
- Keep an eye on flexible spending accounts: Every year you must decide how much to put into your flexible spending account for medical or dependent care. If you don’t spend it all before the year is over, you could lose that hard-earned money. Check with your employer’s benefits team to find out what the rules are.
When you’re ready to take charge of your financial future, call a CPA. Martinson Carter CPAs offer accounting and tax preparation services in Rock Hill, SC. You can rely on us to provide you professional, accurate services.