Can you believe February is only 8 days away? Here comes your W-2. Hopefully the tax man is going to be good to you this year, but if not here are a few ways you can start preparing for next year…
Boost your 401k contributions: When contributing to a traditional IRA or 401k plan, those contributions come from pre-tax dollars. By lowering your taxable income, you’re paying less to the government, while also putting more away for the future.
Give more away this year: You can claim donations on your tax return if the organization you’ve donated to is a tax-exempt 501(c)(3) organization such as a church or the Red Cross. Plus, you can help out an organization that matters to you.
Look for tax credits: If you’ve got kids, you may be missing out on an opportunity to claim the Earned Income Tax Credit. The amount of benefit you receive is dependent on your income and the number of children you have. This often-overlooked tax credit may be something that can give your refund a boost.
File deferently: If you’re married and filing jointly, you may be able to get a bigger refund if you file separately. This might seem like more work, but it could be worth it if you’re looking for a few extra bucks. If you’re not sure about changing your filing status, consult a tax professional and see what they have to say.