MIAMI (CBSMiami) – It’s only the beginning of December, but you should already be looking ahead to 2020 tax-wise, at least.
Maybe you have an expensive home project coming up in the new year, or want to offset some of your holiday spending.
Today’s “Lauren’s List” shares a few end-of-year tax tips to increase your tax refund next year.
Defer Your Bonus
If you’re lucky enough to be expecting a year-end bonus this year, ask about deferring it to January. The extra money could bump you up to a different tax bracket and increase the amount of taxes you owe come April. If you don’t receive the bonus until 2020, you won’t pay taxes on it until 2021, and you can make adjustments accordingly.
Take A Class
Is learning something new part of your 2020 resolutions, well then, getting a jumpstart on enrolling in a new class could save you some money. According to Intuit, taking a course to advance your career may allow you to take advantage of a valuable tax credit of up to two-thousand dollars through the Lifetime Learning credit. Just be sure to prepay for next quarter’s tuition by December 31st.
Max Out Retirement
Easier said than done of course, but if you have the means to max out retirement, you should do it. It’s a great way to reduce your taxable income while building your nest egg for the future.
Donate To Charity
Really, you should be doing this anyway, but especially during the holiday season when so many are in need. Non-cash and monetary donations to qualified charitable organizations can add up, but you’ll have to itemize your tax deductions to take advantage of this. If you volunteer at a qualified charitable organization, don’t forget that you can also deduct your mileage – 14 cents of every mile driven for charitable service.
Of course, consult a tax expert before making any changes that could impact your finances.
What’s your favorite tax tip?
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