We are getting very close to the end of 2014. Although you may have a lot to do before the end of the year, take the time to get ready for 2015 by examining your taxes. There are several savvy year-end tax moves you should be making before 2015.
Allow us to help you make your year-end tax move now.
Try to defer your income if you can. See if you can have your bonus held until January. Also, put more money into your tax-deferred retirement plan. You can also hold off selling assets that will produce a capital gain.
Add as much money as you can to your companies 401(k). Most plan contributions are made before taxes are taken out, this means there will be less money taken from taxes.
Harvest any tax losses by taking a look at your portfolio. If you have more losses than gains, you can use up to $3,000 to reduce your normal income amount. If there is more than $3,000 it can be carried forward to future tax years.
If you own a home, take advantage of a variety of tax breaks. Make your January mortgage payment by December 31st so you can reduce you current tax year’s bill. This will also deduct your mortgage interest on your coming tax return.
Before the end of the year, remember to be generous when giving to charitable organizations. Donations can even include household goods, clothing, and sometimes even vehicles.
If possible, pay spring college costs before the end of the year so you can claim the American Opportunity Tax Credit on this year’s tax return.
We hope the advice in our blog will help you in the New Year. Remember, to continue to save big in the New Year by allowing an agent here at Community Insurance to review your insurance options and see if we can save you any money,