Now is the perfect time to review your finances and estimate your taxes for 2015. This will serve as an incentive to consider all possible strategies. Here are 5 things you can do to maximize your return at tax time!
1. Contribute to an IRA
If you don’t have an IRA in place yet, you must open on by December 31st. Socking away money in an IRA can reduce your federal taxes.
2. Make Your House Energy-Efficient
If you want to make energy-saving home improvements, you must do it by the end of the year. When you do, you can claim a tax credit of up to 30% OFF the costs! BUT, make sure these improvements meet the federal energy-efficiency standards. You can read more about these standards at www.EnergyStar.gov.
3. Shift Income from 2014 to 2015
If you expect to be in a lower tax bracket next year, and have control over the timing of your income, consider deferring taxes by shifting receipt of the income into 2015. Possibilities include year-end bonuses, capital gains and self-employment income.
4. Make Charitable Contributions
You can take deductions if you donate appreciated securities such as stocks. But, remember to write your donations with a check—not cash! You can also put the amount on a credit card in 2014, pay the bill in 2015 and deduct the donation for 2014’s taxes. Either way you go about it, you MUST submit a letter of acknowledgement from the charity, showing the gift’s date, amount and whether you received anything in exchange for your donation.
5. Fund College Expenses for Your Child or Grandchild
Contribute to a college savings plan for your child or grandchild and you may collect state income tax benefits. Payments to an institution for education are not subject to gift tax limitations.
Beaton Accounting has a tax service that can help you file all your deductions. If you plan on doing any of these 5 things, don’t forget that income tax rules differ from federal tax rules. Call our experts when you have concerns! For a FREE tax consultation, call TODAY! (621) 921-6894.
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