4 Ways to Save Money on Your Taxes Before the Year Wraps Up
If you know that you are going to be facing a tax bill when you sit down to do your taxes next year, there are a few proactive steps you can take right now that will help you lower your tax bill. You need to act fast though so you can lower your tax bill before the end of the year.
#1 Make an Extra Payment on Your House
If you have a mortgage, one way you can save money on your taxes is by putting more money into your home. See if you can afford to make January's mortgage payment right now. If you can, make that payment before the clock changes to 2018. The interest from any extra payments you make on your mortgage can be used to lower your tax bill overall.
#2 Make Those Donations
If you itemize your tax bill, now is a great time to make those charitable contributions that you have been putting off. Once again, don't put off what you could do this year for next year. If you have a yearly amount that you donate to charities, instead of making that donation in 2018, make it before the end of the year wraps up in 2017. The more you donate, the more you can write off on your taxes.
#3 Check Your Retirement
Before you pay others, make sure that you have been paying yourself. Check and see how much you have put away for retirement in the past year. If you have not been putting that much away for retirement, now is a great time to move some of the extra cash that you have into your retirement accounts until you reach the maximum amount of money that you need to have in your retirement account. Putting more money into your retirement account will allow you to lower your tax burden while also helping yourself out at the same time. This is a great way to ensure that you have money for your future while reducing your bills in the present.
#4 Pay Your Taxes
Taxes are another thing you can write off on your taxes. If you just got the bill for your winter taxes, hope online and make sure that you pay your winter taxes before the year winds down. Paying your winter property taxes this year will allow you to write off a bigger portion of your taxes on this year's tax bill.
If you want to reduce your tax bill, you need to spend and invest money in other areas of your life. Help yourself out by contributing to your retirement, paying your property taxes, making donations and making an extra payment on your home before the year runs out. For more information, strategies, or assistance, contact services such as Alternative Strategies Insurance Solutions.