Saturday, October 17, 2015

End of Year Tax Tips to Maximize Your Tax Refund



tax tips from Edge Tax and Accounting in Prescott for the end of the yearAs the leaves change colors and the holidays draw near the end of the year is a pleasant time. Halloween, Thanksgiving and all the fun celebratory holidays make it the favorite time of year for most!

Before the rush of the holidays are in full swing, lets give some thought to your taxes. When the calendar year ends, so do many of the things you can do to reduce your tax burden come April.

Edge Tax and Accounting in Prescott wants to remind you to take a moment to reflect on the year and get ourselves ready for the next. It is the perfect time! Here are a few end of year tax tips to maximize your tax refund while you still can.

Donations, Donations, Donations: If you itemize your deductions, the quickest way to get a refund is to donate to a worthy charity. Your donation can be in the form of cash or goods. Donating to a local charitable organization can get you a nice tax deduction, depending on the market value of the products.  The key is to always get a receipt to support your donations.

Retirement Contributions: Another great way to reduce your tax burden while planning for the future is to make a contribution to your retirement savings account. You can take a dollar for dollar reduction in your income and also save for the future. Speak to your financial planner or company's HR for limits.

Accelerate Deductions, Defer Income: There are a handful of deductions that are recognized the year in which you spend them. For example, you get a mortgage interest deduction and if you make an extra mortgage payment on December 31st, you can claim that tax deduction on this year’s taxes. This lets you take the deduction immediately rather than wait an additional 12 months. Spend some time now to think of any deductible expenses you may be able to pay in advance.

Harvest Investment Losses: Chances are you have a few investments in your portfolio that have gone down in value, you can recognize those paper losses and use it to offset investment winners. This is another great thing to discuss with your financial planner!

We hope that you will use these ideas before the end of the year so you can reduce your tax burden, increase your tax refund, and set yourself up for a financially strong new year!

More Information



Tax Preparation in Prescott



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