HO HO HO! Happy Holidays from TaxAudit! 

December 21, 2015 by Eric Linden
Lite Christmas tree on the floating barge

Were you a good tax planner this year? We hope so. January is right around the corner, so let’s make a tax list - and check it twice - for last minute tax saving opportunities!
 

  • Did you sell any stocks at a gain this year? If so, it’s not too late to sell some of your poorly performing stocks at loss to offset those gains. This is a popular strategy for reducing taxes.
  • Did you pay for any college or school expenses? There may be some deductions or credits available to you. Make sure to keep orderly records and keep a look out for that 1098-T form from the educational institution. You’ll need this to do your taxes when the time comes.
  • It’s not too late to make a charitable contribution to your favorite qualified charity. Remember, it only counts as a deduction if you itemize and the charity must be on the IRS’s list of eligible charities.
  • Did you donate an automobile? Remember, there are special rules for donating a vehicle. In most cases, your deduction will be the amount the charity is able to sell it for, which they will report to you on Form 1098-C.
  • Did you meticulously document all of your expenses you plan to write off? If not, plan to start digging up those receipts and documents shortly after New Year’s. This way you’ll give yourself plenty of time to find everything you need.
  • Attention sole proprietors! In most instances, you are required to set up your one participant/solo 401K by 12/31. These plans have the same rules and requirements as any other 401K plan. You might want to check into that.
  • Taxpayers who are 70 ½ and older: Have you thought about your Required Minimum Distributions regarding your retirement accounts? It would be a good idea to look into that as well!

Before you indulge in more eggnog and merriment, take a quick look at what you have done tax-wise this past year. You have little time to waste as the year is almost out, but we thought we could bring you a quick reminder. Be sure to always check the rules for every deduction you are planning to claim.

Tags: Tax planning

Recent Articles

Stack of books, graduation hat, and rolled up diploma
There are some tax-saving opportunities available for graduate school tuition, like the credits for undergraduate expenses. They each have some limitations.
Woman Reading Letter
The IRS sends out a CP14 notice to notify a taxpayer when they have unpaid taxes and/or penalties and interest. What should you do if you get a CP14?
Woman Shopping for Over the Counter Medications
When it comes to medications, you can only deduct the amounts that you pay for medicines or drugs that have been prescribed for you by a doctor.
April 2023 Calendar with Tax Day written on April 18th
In 2023 the tax returns are due April 18th for most taxpayers. However, if you live in California, Alabama, or Georgia your taxes may be due at a later date.
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.