A Fee-Only Planner Can Help You Find Applicable Tax Deductions

Financial planning may seem like a chore but it is worth the effort. For example, are you looking for ways to lessen the amount of taxes you owe this year? You don’t have to handle all of this by yourself—a Fee-Only Financial Planner can help you keep track of applicable deductions and stay on top of your taxes. Here are just some ways you can lower your taxes:

Paying it forward

You can do yourself a favor if you can make your January mortgage payment by December 31. If you can pay early, you will be able to take an additional deduction for the interest paid in the current year.  A move like this may require advance preparation since you may have holiday expenses in addition to your regular expenses. 

Another way to increase this year’s deductions is to pay your state or local taxes in advance. This should help as long as you do not wind up in higher income tax bracket in the following year.

Receive from giving

If you are a teacher, principal or other school employee that works with students, remember that you can deduct up to $250 for items you buy to assist your students’ education. Just be sire to check IRS guidelines to make sure you adhere to the criteria for this deduction.

Stock up on supplies if you run your own business

If you have been carefully making business-related purchases all year, this is the time to get supplies you know you will need and hold onto the receipts.

Max out your retirement contribution

There is a tendency to concentrate on presents toward the end of the year, but a robust retirement account is the gift your give yourself. If you haven’t set aside the maximum amount, do so. you do have until April of the following year to contribute to your IRA, but why wait? The sooner the money is in there, the more it can grow.

About the author

Claire Emory, MBA, CFA, CFP®

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