Getting a jump start on your next year’s taxes requires thought and planning.
I know that taxes may be the last thing that you want to think about right now since April 15 just passed. However, it is the smartest move you could make.
By taking advantage of opportunities now, you could easily make next tax season less stressful for yourself. So….why not:
Clean out your closet! Spring is here! As quickly as the weather changes, so do fashion trends. So why not capitalize on that? If you still have clothes from 2 years ago with tags on them or if your kids have outgrown their winter wear, donate those clothing items to charitable organizations like Goodwill or Salvation Army.
Invest in a rental property. Costs to upkeep rental properties are tax deductible. Certain expenses, such as homeowner association dues and condo fees, property taxes, and repairs are also considered deductible, along with a full range of other expenses. There are stipulations to consider when investing in a rental property. IRS Publication 527 goes into detail.
Send your kid(s) to summer camp. There’s pros and cons to this one. Check out my previous blog to see how the child and dependent care credit works, along with the advantages and disadvantages of sending your kids to summer camp.
Contribute to an IRA. Contributing to a traditional IRA is tax deductible. Contributing to a Roth IRA may place you in a lower tax bracket. Saving for retirement can be a tax benefit, and putting money aside could possibly reduce your tax liability.
Take that job offer. The costs associated with your job hunt and relocation expenses are tax deductible.
Go green. Riding your bike to work once a week, skipping the paper grocery bags, using natural products. There are several ways that you can go green! Something simple, such as installing solar panels on your roof, can qualify you for a deduction.
Review your insurance needs. Long-term health care is tax deductible as a qualifying medical expense. The IRS website has more information.
Talk to your Liberty Tax preparer to see what you can do to prepare for next tax season. Use our office locator or call 1-866-871-1040 to find an office near you.
Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.