5 Last Minute Year End Tax Tips

Following these 5 tips can save you money in 2016!

Whether you are an individual and/or business owner, the following 5 tips can save you money in 2016!

1. Maximize 401K deductions for 2016: 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 $18,000 for 2016. (higher if they are over age 50).
2. 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 2016 instead of waiting to next year.
3. Donation to Charity: Any donations to charity must be made by December 31^st, 2016 to be considered a completed gift for the 2016 tax year.
4. Deferral of Income until 2017: 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 4^th quarter income and defer taxes on that income until 2017.
5. Prepayment of personal/business expenses: Individuals and business owners may look to prepay expenses for supplies, materials and/or services to accelerate deductions for 2016 instead of 2017.Get your 2017 plan off to a good start by getting your FREE ‘financial check-up’ with Robert here today.