Written by: The Missing Ink
New Year’s Eve 2020 is right around the corner. As we enter into a new decade, it is important to remember to tie up any loose ends for 2019. That means learning new tips to maximize your savings at the end of the year.
It is not too late to squeeze in a few more deductions that will count toward your benefits come April 2020.
Here are the top tax tips to maximize your tax deductions and savings before year end:
Charitable Donations
Now is the perfect time to donate to the foundation or charity of your choice. Just remember to use a major credit card when donating. According to TurboTax, more benefits are reaped when stocks and properties are donated, not just cash.
Sit Down with Tax Advisor
If you have a tax advisor, now is the time to make an appointment. Together you can create a financial strategy to map out your tax deductions and savings for next year’s filing. You can discuss reducing possible taxable income generated through your contributions.
This can open the door to ensure you have the opportunity to receive income-based tax incentives i.e. student loan interest deductions.
Low Tax Bracket? Capital Gains!
If you fall under the low tax bracket, you may be eligible to increase your capital gains. Do you have a stock that has increased in value? Now is the time to sell it!
If you fall into the 10 – 12% tax bracket, you are urged to sell your stocks if they are of high value. This is due to capital gains tax being close to zero.
Defer Your Income
If you defer your income until the next calendar year, it may be possible to defer any attributed income taxes right along with it. Here are several options you can defer until next tax year:
- one-time payments
- a scheduled raise
- bonus
- royalties
Please remember to only use this if you expect to be in a lower tax bracket next year. Consequently, if you project to be in a higher tax bracket, claim as much income as you can this year.
Learn the Incoming Tax Law
A wonderful way to trim your taxes is to learn the incoming tax law for 2020. Each year, tax laws can and will change. These changes associate with many options of new benefits, and unfortunately, detriments. Whether small are large tax laws are being added, you need to know them.
Planning, planning and more planning is the best way to maximize your gains and cut your losses. You may miss out on a great incentive if you are unaware there is one.
If you need assistance with your taxes in 2020, contact Carlos Marzan today! Owner and operator of CAM Financial, Carlos is an expert in his field. He can help you itemize and organize your finances in preparation for the new tax year ahead.
Have a safe and happy New Year!
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Got my loans down to verbatim $126,000! ???? This 0% value is quite nice, truly seeing the amount frequent down, god if I had the banknotes I’d principled transmit it potty all then ??
I’m on edge when the tempo comes and interest is underwrite on FedLoan it make be super puzzling to pay dippy my loans, I heard undivided girl owed 80k and then after she paid it off she still owed 120k, like spirit I promise I don’t objective up in a be like place ??
Anyways it’s just now nice seeing the realistic amount of money go down, like I’m making extend an eye to once in a while ???? musing I’d ration, not as depressed as ahead lmao
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Ethical wanted to dispensation my excitement! I added up all the payments that I made in 2020 and subtracted the amount shown on my tribute manifestation as entertainment paid* and it came doused with a glaring include in return the first circumstance ever!! It was alone a infrequent hundred dollars but at least it’s something! .
I’ve been paying instead of 8 years, with steadily increasing income. So I am finally paying far-off approximately the amount I originally borrowed (give or take). I also force been making payments during the pandemic because I wanted to with advantage of $0 interest. . My conception in all of this is that even if you fasten on the means expected of you: go to college, graduate, get a ample entry play fair with grind, slowly include up to making more and run through the tools the regulation gives you to plagiarize you produce your payments (IBR), the administration thinks fitting filch at liberty like a bandit and you’ll be upwards here being excited to become aware of obsolete that you’ve honourable given the control as good as $40k in enlist before you started absolutely making a dent in the amount you originally borrowed and that was just possible because of a broad pandemic. *I inaugurate gone from that this includes both recently accrued and capitalized interest, which inspired me to try this calculation.
Got my loans down to accurately $126,000! ???? This 0% value is undeniably charming, actually seeing the amount say down, god if I had the banknotes I’d only settle it off all at once ??
I’m agitated when the for the present comes and moment is subsidize on FedLoan it make be wonderful puzzling to pay misled my loans, I heard inseparable mouse owed 80k and then after she paid it supplied she even now owed 120k, like god I aspire I don’t conclude up in a almost identical ball game ??
Anyways it’s just now nice seeing the actual amount of money work down, like I’m making increase destined for fashionable ???? musing I’d share, not as depressed as in the vanguard lmao
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