Whether you are an individual and/or business owner, the
following 5 tips can save you money in 2019!
Maximize 401K deductions for 2019: Unlike IRA’s and SEP’s, 401K contributions can only be deducted in the tax year they are deposited. Taxpayers should check their pay stubs to make sure they are maximizing their 401k limit which is $19,000 for 2019. (higher if they are over age 50).
Prepayment of State Taxes: Individuals can deduct taxes paid to state and local agencies on their Schedule A. By paying before year-end they can claim the deduction for 2019 instead of waiting for next year.
Donation to Charity: Any donations to charity must be made by December 31st, 2019 to be considered a completed gift for the 2019 tax year.
Deferral of Income until 2020: Individuals can request bonuses be deferred until January. Cash basis service businesses may consider delaying their November and/or December billings until January to minimize 4th quarter income and defer taxes on that income until 2020.
Prepayment of personal/business expenses: Individuals and business owners may look to prepay expenses for supplies, materials and/or services to accelerate deductions for 2019 instead of 2020.
