The tax year is ending, but there are a few things you can do to improve your tax return for 2017 and set yourself up with the best footing for 2018.
Standard tax deductions vs itemized deductions
The IRS allows you to reduce your taxable income based on a number of deductions. This results in lower income taxes. Some of these deductions are:
- Mortgage interest
- Theft loss
- Medical expenses
- Charitable deductions
You can choose to deduct based on your record of items or you can deduct a standard amount. Sometimes it can save you money to deduct your expenses by item. However, it requires a clear paper trail and time to fill out long forms.
You can sit down with one of our Tax Advisors and see what the best plan for you is.
Contribute to Your Retirement
You can deposit money into 401(k). IRAs and other retirement plans to reduce your yearly taxes. You have until December 31 to make contributions to your retirement fund but you can make contributions to your IRA until April 17, 2018 and have it count toward your previous year’s taxes.
Prepay and Pay Early
So pay your employee bonuses before the year’s end. You can also prepay some of your business expenses. You can pay the lease for the first quarter of next year to meet your deduction goals. The same goes for any business expenses, vehicles, supplies, etc.
Need More Help?
Give us a call today and we can talk about your current tax situation and what your options are!