27 Dec Tax breaks you can still get for 2016
Are you afraid to pay too much on your 2016 tax bill? Well, you have a little time left to get some serious tax breaks for 2016. It is not too late, but you need to act now, so you don’t get a huge tax bill from IRS next April.
Actor Will Rogers once said:
The only difference between death and taxes is that death doesn't get worse every time Congress meets.
Tax breaks you can still get for 2016:
1. Retirement Plan Contribution
Think about your retirement plan contributions. Hopefully, you got a 401k at your job or IRA. If you are under 50, you can contribute up to $18,000 for a 401k and $5500 to an IRA. Did you hit the limit? Find out. If you over 50 it gets even better. $24,000 can go into your 401k without paying taxes on the income but do it now.
2. Flexible Spending Account
Flexible spending accounts allow you to add more money in for this year if you had a significant life event like marriage or a new baby. That money goes in pre-tax just make sure that you have expenses to pay off the balance this year because it doesn’t carry over.
3. Charitable Contributions
Charitable contributions are great if you’re willing to itemize your tax return. This is an excellent way to lower your base tax rate or even really get that tax bracket down.
4. Unload losses to offset your gains
Investment losses could also be a bonus especially if you’ve got some poor performers in your portfolio. It’s called tax-loss harvesting, and you can offset your losses against your gains.
5. Pay college cost early
Paying off college costs early can help even though you don’t have to pay your tuition bills for 2017 yet. You
can if you use the American Opportunity tax credit. There are income limits and restrictions but if you qualify you can see a big benefit in April.
Do you know where your business is heading? To learn more about how we can simplify your accounting process, call us at 727.828.9945 to schedule your free consultation.
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