Don’t Miss These 10 Last-Minute Tax Savings Opportunities

No matter your circumstance, a goal you should have is to realize tax savings by taking advantage of some proven year-end tips to reduce your taxable income.  Let’s dive in!

1

When you prepare your annual tax return, you must tally all available sources of taxable income to arrive at your gross income. 

Be Sure to Take Last-Minute Deductions

2

The AMT originally came into being as a way to make sure wealthy taxpayers don’t use too many legal deductions to drive down their tax bill to unreasonable levels.  However, with time, more and more middle-class people have become affected by it.

Be Mindful of the Alternative Minimum Tax (AMT)

3

It’s highly likely you’ve got a few investments which are lower are because the Fed still needed to learn how interest rates affect inflation and caused us to miss the Santa Claus Rally.  That doesn’t mean you can’t use these losses to keep the tax man away!

Buy Low, Sell Low

4

By contributing the maximum to your traditional retirement accounts each year, you can receive some tax savings by reducing your taxable income.

Contribute the Maximum to Available Retirement Accounts

5

In order to prevent Mom and Dad from shifting their investment income to their children to hide gains, Congress created “kiddie tax” rules.  This makes any income earned by children taxable at a higher tax rate than they otherwise would as a non-dependent.

Avoid Paying the “Kiddie Tax”

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