As April’s tax deadline looms, there are some things you can do before Dec. 31 to cut your tax bill.<\/p>\n
First, use any extra money to make a final contribution to an IRA or 401k. This makes a tidy deduction in taxable income. In 2018, those limits are $5,500 and $18,500, respectively.<\/p>\n
Don’t forget that unused money in a flexible medical spending account will be lost at the end of the year so use the balance to stock up on eligible household items like bandages, vitamins, and sunscreens.<\/p>\n
Homeowners that plan to itemize their deductions should think about squeezing in an extra mortgage payment at the end of the year, something that adds to a deduction and pays your house off sooner.<\/p>\n
One significant change in the 2018 tax code caps the deduction for state and local taxes (SALT) at $10,000 for any combination of property, income, or sales-related taxes. For those with expensive homes in high property-tax states, this can be a hit. For example, New York’s average deduction last year was $21,000. The deduction cap won’t affect the average homeowner outside coastal and metro areas.<\/p>\n
According to Quicken, the end of the year is also an excellent time to make energy-efficient improvements such as insulations, roofs, or doors that can qualify for up to $500 through the Residential Energy Tax Credit.<\/p>\n
According to Quicken, the end of the year is also an excellent time to make energy-efficient improvements such as insulations, roofs, or doors that can qualify for up to a $500 credit.<\/p>\n
Many people can gain a small advantage in their taxes by selling investments that lost money during the year and using the losses to offset capital gains on a dollar-per-dollar basis, up to $3,000, on the ones that did well. Extra losses can also be carried over to future tax years, meaning one particularly lousy year can spread out over time.<\/p>\n
Additionally, donating cash to charity is deductible, but it is important to remember that unwanted items can be given and written off at current fair market value as well.<\/p>\n","protected":false},"excerpt":{"rendered":"
As April’s tax deadline looms, there are some things you can do before Dec. 31 to cut your tax bill. First, use any extra money to make a final contribution to an IRA or 401k. This makes a tidy deduction in taxable income. In 2018, those limits are $5,500 and $18,500, respectively. Don’t forget that […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29,32,31],"tags":[],"class_list":["post-992","post","type-post","status-publish","format-standard","hentry","category-business","category-general","category-retirement"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t