Save Money Act by Dec. 31 and you can lower your tax bill
If you want to try to lower your tax bill, the important date isn’t in April — it’s Dec. 31. Tax pros say you still have time to make a few money-saving maneuvers.
1. MAKE A DONATION: Last-minute charitable contributions can be tax-deductible — even if you make them on a credit card, according to Christi Bender, a certified public accountant in Phoenixville, Pa.
2. OFFSET CAPITAL GAINS: If you’ll have capital gains to reckon with, consider selling off some underperformers in your portfolio, said tax adviser Grant Keebler of Keebler & Associates in Green Bay, Wis.
3. GET OUT OF THE OFFICE: End-of-year business travel and even working from home could lower your tax bill if you work in a city with a wage tax, Bender said.
4. STOKE YOUR SAVINGS: Consider maxing out the contribution limit on a traditional IRA (It’s $5,500 if you’re under 50 and $6,500 if you’re older) if you’re eligible to deduct all or part of your contributions.
5. STAY AWAY: Retirees who split their time between homes in different states may be able to cut their tax bills by spending the last few days or weeks of the year in the state with lower taxes, Keebler said. The Associated Press