GRAND BLANC — It’s hard to believe we are in the last quarter of the year! With 2019 coming to an end, now is a great time to make some easy and smart tax moves to help lower your tax bill and increase your tax refund when you file.
Barnett Financial offers these Year- End Tax Tips:
Make charitable donations by Dec. 31, especially non-cash donations. Be sure to keep complete records and receipts.
If you are age 70 ½ or over, make a qualified charitable distribution (QCD) from your IRA.
Check flexible spending accounts. If you still have funds available, use them before 12/31, or you could lose those dollars.
Have a health savings account (HSA)? You have until April 15 to make 2019 contributions of up to $3,500 for single and up to $7,000 for a family.
IRA contributions can be made up until April 15. You can deduct up to $6,000 (additional $1,000 if you’re 50 or over) on the 2019 income tax return.
Pay college tuition by December 31 to maximize 2019 college tax credits.
If you own a business, pay employee bonuses at year-end, rather than at the beginning of next year.
Also, consider prepaying expenses if you own a business. For example, stock up on and pay for supplies for 3 months. You can take the deduction this year. Or, defer some of your income, by delaying billings until late December, which may ensure that you won’t receive payment until next year.
For those who pay taxes quarterly, the IRS reminds them the end of year deadline is quickly approaching and taxpayers should consider making an estimated or additional tax payment to ensure their tax withholding is still accurate. The fourth quarter payment is due Wednesday, Jan. 15. More information on tax withholding is available at: www.irs.gov/newsroom/get-ready-to-take-the-guess-work-out-of-paycheck-withholding