Tax season is a time that many people love or dread.
It usually depends on how much you are owed and whether you are expecting that payment, or whether you are afraid of what you owe the IRS.
At the end of the year, there may be ways to reduce that tax bill or even collect a refund. according to TurboTax.
Here are ten tips for making the most of the upcoming tax season
Carry over your bonuses. If you expect a big bonus, it could put you in a higher tax bracket, forcing you to owe more money.
Delay that income until early next year and see if your boss pays you that bonus in January. That way, it’s near the end of the year, but it won’t be on next year’s taxes.
Speed up your deductions and defer your income. This means making an additional mortgage payment in December so that it can be deducted in 2022 from your taxes.
Related: You May Get A Smaller Tax Refund Next Year, Here’s Why
You can donate to charity and use it as a tax deduction while helping those in need. Clean your wardrobe and take your old clothes to a qualified charity and itemize your tax deductions.
The CARES law temporarily suspends the limit on the number of donations you can deduct when itemizing your deductions.
Take a course and get a tuition bill while paying the next semester’s tuition fee before the end of the year. You could get a tax credit of $ 2,000.
Make contributions to your retirement account to reduce your taxable income.
Related: Parents Be Forewarned You May Have To Refund All Child Tax Credit Payments Based On Your Child’s Birthday
Use your flexible spending account and skip doctor visits so you don’t lose money.
If you have lost the money you invested, you can sell the stocks and offset your losses with your gains, reducing the taxes you will have to pay on your investments.
Adjust the amount of taxes withheld from your paychecks if you’ve seen a major change in your life, such as having a child or losing an income.
Consider the credit for other dependents if you are caring for someone else such as a grandparent. You can claim up to $ 500.
Finally, collect all of your receipts for your property taxes and major purchases. You can deduct state and local property taxes up to $ 10,000.
Related: Child Tax Credit Is Fully Refundable, Here’s What It Means
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