Four Holiday Tax Tips
When you think about the end of the year and the holiday season, your mind is probably not brought to the thought of your taxes. Dealing with some taxes before the year is over can be a great way to save you some money and ensure that your tax season goes smoothly. You don’t have to spend an excessive amount of time with your taxes during the holidays, but take a few hours to deal with your taxes and, come April, you will be glad that you did.
- If you can pay your home’s property taxes on or before December 31st, you can deduct that money from your tax return. When you decide to take this route, you have to understand that you will need to keep paying this tax early to ensure you are getting the deduction on a yearly basis.
- Donate some money to your favorite charity. This habit can become a holiday tradition! Giving money to your favorite charity can be a great way to get into the giving spirit and you can deduct the money or the value of the charitable gifts that you gave.
- Make sure that you spend the money that you have in your flexible spending account. If you do not use the money in your FSA account, you will probably lose it.
- Practice filling out your tax return. We know that the tax forms can be confusing and frustrating, but if you fill out a practice return you may be more prepared for the tax season. You will know what to expect and you can prepare yourself for the tax season.
Enjoy your loved ones this holiday season! But, don’t forget to sneak away for a few minutes to take advantage of the benefits that can be had if you work on your taxes now, rather than later.