With 2015 quickly coming to an end, did you know there is still time to implement some individual tax strategies that can reduce your tax bill? If you’re looking for a few things that can be done to impact your 2015 tax return, we’ve compiled a quick list:
1. Prepay your child’s college tuition.
Prepaying college tuition bills that are due in early 2016 can benefit your 2015 tax return. The result is a larger credit, which comes directly off your taxes and differs from a deduction, which is deducted from your income.
2. Bunch together expenditures.
If your total annual itemized deductions are similar to the standard deduction amount, then bunching expenditures every other year might be a good option. Itemize your deductions this year, and then next year claim the standard deduction. By alternating, you’ll increase your cumulative write-offs and start to save hundreds of dollars. This works because you’ll secure higher itemized deductions one year, and fairly generous standard deductions the next.
3. Contribute to your IRA.
If you are eligible to contribute to an IRA, you can reduce your taxable income up to $12,000 for a married couple. Double check qualifications with our Enrolled Agent, Ken Weinberg.
4. Donate to charitable organizations.
There is a reason December is a prime month to make donations! If you’re feeling generous, keep in mind that donations to charitable organizations can be deducted. Just be sure to ask for a donation receipt for your records.
At Ken-Mar Tax we specialize in helping individuals and the small business owner develop a tax strategy that provides the basis for true growth and a long term wealth development plan. Schedule an appointment today, or call for a free consultation for tax preparation services. We’ll even take a look at your last three years returns to see if there were any tax deductions you may have missed and will help you benefit from an amended tax filing.