Tax Planning

Skilled recommendation on the tax planning season earlier than the brand new 12 months

(WTNH) – With tax filing season only months away, it’s time to create your to-do list and double-check it. H&R Block’s Kathy Pickering has some expert tax planning tips before we start the new year.

To start off, you can make last minute contributions to your retirement accounts like your 401K or IRA.

“So not only can you save for retirement, you can also lower your taxes,” Pickering said.

When you have money in a flexible savings account, Pickering says you should use that money because they will use it or they will lose it.

There is still time to make tax-deductible donations to your favorite charities.

“Which is so important right now as everyone is getting through the pandemic and wanting to help each other recover,” Pickering said.

A special tax break this year means individual taxpayers can deduct up to $ 300 for charitable giving. Married couples filing joint statements can deduct up to $ 600, but be sure to keep your receipts.

“And that’s in case the IRS comes back and asks you about it,” Pickering said.

Check out the 2021 tax law changes that affect you, such as: Finally, start by gathering all of your tax documents. Pickering suggests filing sooner rather than later.

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