The season many dread is just around the corner – tax season! However, when you are prepared, the task becomes significantly less daunting. We want you to view tax season as a task accomplished, which is why we have gathered these essential year-end tax tips to ease the process:
- Since being placed in a different tax bracket can mean a great deal of difference in how much you pay in taxes, many individuals choose to defer their income so that they can remain in the same tax bracket. This can be done by asking your boss to hold your bonus until the beginning of the year or refraining from selling assets that will result in capital gains.
- Did you know that adding to your 401(k) could be extremely beneficial before tax season because the Internal Revenue Service (IRS) cannot touch this income? This will not only be beneficial for this year’s taxes, but it will also allow the income to accrue tax-deferred value sooner and longer.
- If you have any assets that have recently decreased in value, you can utilize this to your advantage. Capital gains can actually be offset by capital losses, meaning your income would appear to be less.
- Since the holidays are all about giving, make sure to go all out this holiday season! Your charitable donations will be rewarded in significant tax breaks. Since you have used your hard earned money to assist those in need, the IRS will give you a tax break to encourage you to continue promoting the efforts.
Are you ready for tax season? Contact Scavone Insurance Agency Center LLC in White Plains for all of your New York insurance needs. We will go above and beyond to guarantee security in all realms of your life.