Think about your taxes now for the best results in April
Once again, don’t wait until April before you think about your tax situation. There are changes and tax goodies you will want to take advantage of before you get overwhelmed at the end of tax season.
First compare this year’s income (project it to December 31st) with last year’s and see if anything is going to change significantly. You don’t want to be paying too much or too little in the remaining months. Did you know that you can set aside up to $15,000 in 401(k) accounts? And if you are over 50, tack on $5,000 more. If you have an IRA, the limit is $4,000 with $1,000 more for the over fifty crowd and you can make these contributions up to April 16th of next year. Whoopee. It’s time to sell losing stocks to offset portfolio gains and rebalance that portfolio while you are at it.
Looking to the future, there will be new credits for your greening your home this year and next. And don’t forget that hybrid car you bought this year…you can get up to $3,400 in tax credits for this move…almost enough to cover a week’s worth of gas.
It makes sense to check your tax situation with the new batch of software or with your accountant, so you aren’t behind.