Happy Finance Friday! (Emphasis on the Friday)
I know what you’re thinking. The topic of this post pains me as well. I can’t believe tax season is right around the corner. It’s painful to think about, but a little planning might go a long way when you’re expecting that big refund check in the Spring. Here are a few things you can do now (before the holidays hit), that might help you maximize that refund:
1.Make donations to charity
-This can include money, clothing, food, travel, etc. that was spent to make a charitable donation.
-If you are receiving something in return (i.e., race entries) you must deduct the value from the total.
-Just remember to keep in mind only 501(c)(3) charities are deductible and to keep your receipts. Make sure if you are making a large donation that you receive the correct paperwork for your records.
2. Open a Traditional IRA
If you and/or your spouse do not have access to a work retirement plan, this is a great option to investigate.
3. Pay January’s mortgage in December
I realize this is a lot to ask, especially with only a few months left in the year and the holidays around the corner. But if you think you can swing it, the mortgage interest paid is deductible on your tax return. (Note – you may want to consider what you pay in mortgage interest to evaluate whether this is worth it or not.)
4. Maximize 401k Contributions
If your employer offers a 401k, you may want to consider boosting your contributions for the next few months. The more you can stash away here, the lower your taxable income will be.
5. Contribute to a 529 Plan
If you are saving for college, this is a great way to kill two birds with one stone. However, this is a state plan, so it may vary. Consult your tax professional or look into the benefits of this plan to determine if it’s right for you. A little research might go a long way.
Here’s another article that includes different topics to consider that could save you some money:
Note – taxes are complex and everyone’s situation is different, please discuss these options with your tax professional before you implement them to make sure that they are right for you.
On another (more fun) note, I completed this indoor workout last night and it kicked my butt (in the best way possible). I would highly recommend it. It takes approx 15 minutes to get through the circuit, so if you’re low on time you can make it as long as you like! I followed it up with a fresh cheeseburger casserole:
Amazing. I couldn’t get enough.
Have a great Friday, everyone!