Tax Tip 101 – How to Save Money on Your Taxes?

Tax planning is the key to saving money on your taxes. The best time to plan is now. Consulting with your tax advisor is key. Here are five things that you can do that may reduce your tax liability.

1. Charitable Donations. Cash donations are great, but don’t forget about those unused items that you have in your home.  Donate the things you don’t need or use to Goodwill, Salvation Army or anyplace that accepts non-cash donations.
2. IRA or Retirement Contributions. A great way to save for your retirement. These contributions may save you tax dollars.
3. FSA & HSA Contribution – Review these accounts and make the necessary changes. Use these accounts to pay medical expenses with non tax dollars.
4. 529 plan – Start saving for your child’s college education.
5. Take advantage of a stock loss. Sell the stock.

Remember to consult your tax advisor to find out how these tips can benefit you. These are only suggestions.  There are no guarantees.  Each taxpayer situation is different. Want more information – email or call for a free consultation.

Tax Tip 102 – What do I need to do my taxes?

What you need to do your tax return depends on your tax situation. Do you have dependents? Did you have a business or rental property? Are you preparing your own tax return? Will you pay a professional to prepare it? Here are a list of things you may need.

1. Identification – Social security numbers, Legal name for everyone on the tax return. Picture ID-Driver’s license or state ID is best.
2. All tax documents – Wages, Interest, dividends, stock sales, unemployment retirement income and etc
3. Business income and expenses. 1099Nec Forms and Schedule K1
4. Itemized deductions – Medical expenses, mortgage interest, property taxes, donations, and etc
5. Form 1095A Healthcare Insurance Marketplace Statement
6. IRA and 529 plan Contributions

If you still have questions, give me a call or contact your tax advisor. This is not a complete list. But it should get you. Get you started.

Tax Tip 103 – What Credits can I take?

Most of you have heard of the Child and Dependent Care Credit, Other Dependent Credit, and the Earned Income Credit. Here are several other credits you may not know about.

1. Adoption Tax Credit – For eligible adoption expenses
2. Clean Vehicle Tax Credit – up to $7,500 for purchase of Plug-in and Fuel Cell Electric Vehicles
3. Energy Efficient Home Improvement Credit Exterior doors, windows, central air conditioners, etc
4. Residential Clean Energy Credit – Solar and other clean energy property

This is not a complete list. But it should get you get you started. For more information about these and other credits, give me a call or consult your tax advisor. Remember this and all my tax tips are for information only. There are no guarantees.  Each taxpayer situation is different.

Document #2024-122