These four tax moves will save you money in 2022:
- Make your charitable contributions this month. You’ll get a deduction for the full amount, instead of just the portion of the donation that was made after December 31st.
- Consider selling investments at a loss (or taking losses on other income). If your losses exceed $3,000, they can be deducted from your taxable income in future years.
- Stash Your Cash for Medical Bills. You can use HSA funds to pay for deductibles, co payments, coinsurance, and other qualified medical expenses. Withdrawals to pay eligible medical expenses are tax-free. Unspent HSA funds roll over from year to year, allowing you to build tax-free savings to pay for medical care later.
- Maximize Your Retirement Savings: If you’re not contributing enough to your 401(k) or IRA, now is the time to boost your contributions. Let’s face it that what you have in your retirement account is mostly all based on what you put in.
If you have additional questions (especially if you are self-employed) on tax reducing strategies that actually work, make sure to contact us for answers.