As 2013 comes to a close, it’s important to complete a financial review and make sure that you have all of your finances in line for tax time in a few months. Here are 5 Year-End Tax Tips to make sure you take full advantage of tax rules.
Last Minute Deductions
There are many deductions you can take that will increase your deductions. Contribute to charity, make donations, and have any medical procedures done that may be tax deductible.
Contribute More to Retirement Accounts
Contributions to an IRA or 401(k) are tax deductible, so be sure to contribute as much as you can before year end.
Watch Your Flex Accounts
If you signed up for a flex account for medical or childcare expenses, be sure that you use that money before the end of the year. Flex accounts are “use it or lose it” so if you don’t use that money before the end of the year, you won’t be able to use it at all.
Give Gifts to Relatives
Individuals can give $14,000 tax free and couples can give $26,000.
Be sure you have everything in order now, rather than waiting until tax time. Not only will this save you time later, but it will also help you discover any areas in which you need to increase your deductions or seek tax advice.