Year-End Tax Tips

Year-End Tax Tips

happy new yearNow that 2017 is coming to an end, here are some things to consider:

  • If you qualify to have a Health Savings Account you need to OPEN it by the end of the tax year.
  • Make charitable contributions and have the necessary proof.
  • If you bunch your itemized deductions every other year:
    • Make sure you are paying your real estate taxes in the year you intend to itemize.
    • Make any 4th quarter state and/or local income tax estimate payments in the year you intend to claim the itemized deduction.
  • 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. Be sure you have the provider’s federal tax identification number or social security number. You will need this if you are claiming the Child and Dependent Care Credit.
  • 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 (Health Care and Dependent Care FSAs). Do you need to pay bills and get reimbursement by a certain date?

Colleen Minnich

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