As the year comes to a close, we all should be thinking of how to make the most of our finances- individuals and business owners alike. December is an important time to take advantage of certain tips that will set you up for a more lucrative and hassle-free year next year. While it may not sound fun to devote extra time to analyzing your money, it will pay off in the end.
Here are three key end-of-year tax tips:
- Use your benefits
If you have a flex spending account or similar tax-free spending account, don’t let that money go to waste. Make sure you take advantage of your benefits for medical care, eyeglasses, or other similar items before the deadline runs out. This may also apply to work-related bonuses, insurance claims, or investment accounts.
- Analyze your cashflow
Examine your income for this past year, and where all of that money went, including things like retirement accounts, medical expenses, stocks/investments, and charitable giving. Compare these figures to last year’s tax filing, and you may be able to anticipate your new tax bracket, if applicable, and what your potential return might be.
- Strategize financial movements
Depending on your tax goals (especially if you own a business), do some research on what will help or hinder you. Perhaps you should delay a large purchase or work bonus. Or perhaps you should sell off some assets now. Maybe you should hold off on closing a big sale, or maybe now’s the time to throw your extra cash in your retirement account. Moving your money around in a smart way can maximize your tax benefits.
Want more tips on how to utilize the end of the year in a way that helps with next year’s taxes? A qualified CPA can help. Get in touch with us at S.J. Wick & Associates for your free consultation.