Most Boston area tax advisors suggest their clients to start thinking about their taxes early. As the end of the year rapidly approaches, now’s the time to do some tax planning. By starting now, you can make next April 15 a good bit less stressful. Here are a few tax tips that may be helpful.
Four Boston Area Tax Tips
Boston area tax tips: 1) You can receive a tax credit for energy savings. Install a energy-efficient solar system and you can get a credit for 30% of the cost. Visit EnergyStar.gov for more information on other energy credits.
Boston area tax tips: 2) Use any stock market or other investment losses to offset any other gains or to reduce your taxable income. By law, you can wait until December 31, but it may be a good idea to begin planning now.
Boston area tax tips: 3) Know your retirement plan options. You have until next April 15 to fund your IRA, but only until December 31 to make your maximum contribution to a 401(k). You can contribute up to $18,000 if you’re under age 50, and up to $24,000 if you’ll turn 50 by on or before December 31.
Boston area tax tips: 4) Plan any charitable donations now. Cleaning out your closets ahead of time will help maximize any charitable deductions and get the jump on spring cleaning! If you plan to donate cash, spreading it out over the next couple of months may make it easier on your pocketbook.