There are certain tax tips that can help a taxpayer shift their tax bracket by simply utilizing some smart tax planning techniques: one of those techniques is "accelerated deductions." If you expect to pay more tax in the current year than what you will pay in the upcoming year, you might want to consider the "accelerated deductions" strategy to help reduce your tax liability in the current year. By increasing your deductions in a given year, you give yourself a better chance of paying less tax. Here are some concepts for accelerating deductions:
- Make extra charitable donations
- Realize losses by selling securities at a loss
- Renew professional journals and licenses prior to year end
- Prepayments of state income tax
- Sell other investment property at a loss
- Pay next year's fees and subscriptions in the current year
- Replace outdated or old business equipment in the current year
- Buy a residence, instead of renting
Deferral of Income
TaxesThis strategy of moving your tax deductable payments and donations to the following year could mean hundreds more on your return.
TaxesNot taking the standard deduction this year could save you hundreds of dollars.
TaxesThe amount of money you save by paying your mortgage off quickly will far exceed any benefit from the mortgage interest tax deduction.
TaxesThe receipts you cram into your wallet could be replaced with cash come tax season.
TaxesPaying your bills early or giving an extra donation now can help you come tax time.
RetirementFiling your taxes during retirement can be just as time consuming as when you were employed. We have some tips to help you out.
TaxesRunning your own business has both personal and financial perks.
TaxesIf you are paying out of pocket, you can make your business expenses work for you at tax time.
TaxesThese tips will help you get a larger refund this year, while teaching you how to pay less taxes going forward.
TaxesTaxes aren't avoidable, but you shouldn't pay more than your fair share. Here are five moves you can make at year's end to lower your tax bill.