Did you know that tax season is going to be different this year than it has been for quite a long time? It’s true; with sweeping reforms at the federal level that took effect this past year, most Americans will see bigger differences to their overall filing and return processes than they have since the mid-1980s!
Are you prepared for tax season with all this change coming your way? If not, here are ten great tips for getting tax season ready in 2019:
One of the first moves many people make when preparing to file taxes is getting some last-minute charitable giving done. These donations can help lessen your tax burden and can come as cash donations or itemized tangible gifts to charity organizations.
What does this mean? If one of your investments is performing poorly, you can sell it to help offset the amount you are taxed on any gains you make on successful investments.
If you are over the age of 70 and have a retirement account, you will need to take the required minimum distributions mandated. Otherwise, you may face weighty penalty fees.
Deductions won’t work exactly as they have in the past as of this year, since the allowances are changing in many areas. Consider combining deductions or grouping them together to maximize their impact on your tax burden.
By investing more of your income into your retirement account, you minimize the amount of your income that is taxable.
With a larger amount now allowed for excluded gifts, you can stick an extra thousand dollars a year into a family member’s tax-exempt account. This is great for covering school or other important expenses.
Expecting a bonus at the end of the fiscal year? Save it for after your taxes are filed, if possible.
While tax reform went into effect this year, the disappearance of the individual mandate penalty won’t take effect until 2020. If you’re uninsured, try to amend this in time for the cutoff date.
Do you have everything in order for the possibility of your passing when it comes to your assets? While you may have a will and other necessities lined up, be sure to talk to your tax pro about ensuring your loved ones won’t be under greater tax burden than necessary when it comes to transferring your assets to them after you pass.
Guard Yourself from Fraud
To prevent fraud, only work with trusted entities to prepare and file your taxes, like the experienced industry professionals here at Munn & Morris Financial. We’ll protect you and your money – and get you the best possible return, every time.