Year End Tax Tips!

Year End Tax Tips!

goodbye-2016Here are a few things to consider before the tax year ends:

  • If you qualify to have a Health Savings Account you need to OPEN it by the end of the tax year.
  • Even those over 65 years of age will get to deduct only those qualified expenses over 10% of adjusted gross income in 2017 so this is the time to pay your medical bills if you will be under that amount in 2017 but over 7.5% in 2016.
  • Make charitable contributions and have the necessary proof.
  • If you bunch your itemized deductions every other year then make sure you are paying your real estate taxes in the year you need to.
  • If you haven’t already been doing it all year: Start compiling mileage information for work, charitable and medical purposes.
  • Make a large extra contribution to your 401K or SIMPLE if it’s allowable.
  • Get a statement at the end of the month from any daycare centers or providers that you paid. You will need it for your taxes.
  • If you have capital gains then consider selling off stocks with losses to offset them.
  • Did you take any required minimum distributions from retirement accounts? They are required by April 1st following the year you reach age 70 1/2.
  • Consider your flexible spending accounts. Do you need to pay bills and get reimbursement by a certain date? Medical and childcare.

Linda Reinhardt

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