6 Year-End Tax Moves To Make Today
How would you like to save on your 2015 taxes, by being smart now? Well even though we still have about 3 months before 2016 hits… You can set yourself up now to pay less taxes on your 2015 income.
Here are 6 Year-End Tax Moves that can save you a bundle of cash and get you financially fit for the new year:
#1: Add to your retirement plans.
You can save $14,500 in a 401(k), and if you are 50 or older you can put up to $23,000 away. Which may give you a nice tax deduction.
#2: Pay a month or two of your 2016 mortgage payments early.
Make your January and February mortgage payments in December, which will allow you to deduct the interest portion in 2015.
#3: Pay 2016 local taxes early.
Pay any property, local or state taxes that would be paid in the first quarter of 2016 in 2015 instead. By doing so you can deduct the payment off of your 2015 taxes.
#4: Start a College Savings Plan.
If you have young children, start a 529 College Savings Plan. The cost of college is not going down, so now is a great time to get started.
#5: Make business purchases for 2016 now.
If you own a business, make equipment purchases now that will be used in 2016. For example; I need a new printer and desktop for my company. If I pay for it on my credit card in November or December but pay the credit card off in January I can still take the deduction on my 2015 taxes.
#6: Be charitable.
You can donate clothing and household items to qualified charities before January 1st and deduct the value in 2015. Be sure to get a receipt from the organization you are donating to.