Today, we would be talking about five (5) tips to keep up with the tax reform. The end of the year is a critical time for any entrepreneur or individual, as it marks the end of the fiscal year. By using the following tips, you will save a large amount of money that you can use for other purposes
Donate to a Charity
Tax reform may allow charitable deductions, but it makes enumeration more difficult or less useful in the future. When you make a donation to a qualified charity, you may also be eligible for a tax deduction.
Pend Taxes to the Following year
There may be lower tax rates and lower rates for many Americans next year due to tax reform. Therefore, if you have income that you can control, consider waiting to receive them, so you owe less tax compared to this year. By deferring taxes, you keep more money in the account that can grow over time.
Collect as Many Deductions as Possible
So, another smart fiscal strategy at the end of the year is to collect as many deductions as possible this year. If you are an employee who earns commissions or an end-of-year or end-of-quarter bonus, find out if they can be paid next year. These spending plans are offered by many employers to help you save certain expenses, such as child care and medical bills, before taxes through payroll deductions.
Have a Retirement Plan
Every dollar before taxes that you contribute to a traditional retirement plan is an income over which you do not pay taxes until you make a withdrawal. In addition, many employers match a percentage of their contributions to company-sponsored retirement plans. If you have a retirement plan at work or the government savings plan, check how much you contributed during the year. Take advantage of all the employee benefits you can this year
Pay Deductibles in Advance
Pay in advance as many deductible expenses as possible so you can take advantage of them before they disappear or are harder to claim in the future. Taking advantage of that benefit is a great offer because you get free money to build a bigger nest of savings and reduce your taxes at the same time. Pay all deductible expenses in advance More explained here: http://www.cairns-accounting-bookkeeping.com/what-causes-a-tax-return-to-be-rejected/
Flexible Spending Agreement
Another type of account with benefits linked to the calendar year is a flexible spending agreement. The tax reform can eliminate or reduce many existing tax deductions. For example, if you have self-employment income from a small business or independent work, you can delay the billing of clients or clients. Some require that you detail the deductions on your tax return and others do not.
If you have tax questions or want to do more tax planning at the end of the year, it’s always a good idea to meet with a tax professional that can review your situation and make sure you never pay more taxes than your fair share. I hope these tips help you keep up with the tax reforms.