Start planning now for year-end tax impact.
There are numerous ways to still save on taxes this year. Our end of the year checklist covers the most common ways to plan and save money.
1. Charitable contributions: Give before the end of the year and reduce your income taxes. Review your gifts to date to ensure you have given to the causes important to you and in the amounts you intend. Also check that you have proper receipts and documentation.
2. Flexible spending accounts: If you contribute to a Flexible Spending Account, make sure you have used all the money in the account. Now might be the time to have that medical procedure you have been delaying.
3. Mortgage Interest: You can pay your January mortgage payment early and add to your mortgage deduction this year. Just check with your accountant on how do to this.
4. State and local taxes: Call your accountant now to ask what state and local taxes may be paid in 2016 that will reduce your deferral income taxes for the same year.
5. Income tax withholding: After calculating your taxes for 2016, work with your accountant to see if you should adjust the withholding on your employers W-2 form.