How To Save Money On Your Taxes Before the End of 2017
It’s always tax season in Fort Lauderdale. Effective tax planning is a year-round process. When done correctly, you can save a significant amount of money on your taxes when it comes time to file in the spring. As the year comes to a close, it’s never too late to save money on your taxes. While most Broward County residents spend December spend their hard earned money on gifts for the holiday season, it can be difficult to save money. But there are some solutions. Here are some easy tips to save money on taxes before the year is over.
Add Money To Your 401(k)
One the best ways to save money on your taxes is to contribute more money to your retirement accounts. Whether you have an IRA or a 401(k), it’s never too early to start. Most people wait until just before they file their taxes. By increasing your retirement contributions, you are able to save more money come tax time. If you receive a holiday or Christmas bonus from your employer, put it to good use by adding it to your 401(k). Not only does it increase your retirement saving, it also helps cut down on your tax burden. Should you receive cash as gifts from family members, add it to your retirement savings. The higher your 401(k), the more income you can exclude from taxes.
Donate to a Charity
The holidays are a time for giving. If you have some extra disposable income, you can save money on your taxes by donating to a charity. Cash donations are not only tax deductible, so is the value of any donated items. Make sure to keep a record of all your receipts. Each year, everybody receives a gift they never wanted. Rather than hold onto something will never use or return it to the store, donate those gifts to a charity.
Defer a Portion of Your Income to 2018
Most people in Fort Lauderdale work for an employer. If you fall into this category, you probably are not in the position to push some of your income to the following year. But if you own a business, you can hold off on billing your clients. Although this strategy will lower your taxes for 2017, it may add to your tax liability the following year. Deferring income to 2018 is a good option if your earnings levels are higher than in a typical year.
Pay Your Mortgage Early
One of the most lucrative tax deductions is the mortgage interest. By making an early payment on your mortgage before the end of the year, homeowners will have more interest to write off for this year. The IRS allows homeowners to deduct mortgage interest even if they are not scheduled payments. By paying your January mortgage right now, it should lower your tax liability for 2017.
Do You Have IRS Tax Problems? Fort Lauderdale Tax Attorney Ira Zuckerman Can Help
Tax law can get complicated. Countless people throughout Broward County struggle each day with a variety of tax problems. Many owe back taxes and may be facing a tax lien, bank levy or a possible wage garnishment. For more than 30 years, Fort Lauderdale tax attorney Ira Zuckerman has helped clients resolve their issues with the IRS. He and his legal staff at Zuckerman Law, LLC utilize a personable and comprehensive approach to help place each client in the best position to succeed. To learn more, contact their law office in Fort Lauderdale today and schedule a consultation to discuss your case.