With just a couple of weeks left to go, now is the time to start thinking about some year-end tax moves you can make. We have some ideas for you to think about before the year is over.
Make an Extra Mortgage Payment
You can typically write off the interest paid in the calendar year, not just on the 12 scheduled payments. So if you make 13 payments this year, you can write off the interest on 13 payments.
Be Generous
You can make a donation to a charitable organization. Make sure you keep good records. Cancelled checks, written letters of acknowledgment or receipts are good to keep a paper trail on your donation, and make sure they have dates on them!
But remember there are some contributions aren’t tax deductible, including gifts made to:
- Political parties, political campaigns or political action committees
- Gifts donated to individual people
- Contributions to labor unions, chambers of commerce or business associations
- Contributions to for-profit schools and hospitals
- Contributions to foreign governments
Don’t forget about your Flex Spending Account
These funds are often “use them or lose them”. That means, if you don’t use them by years-end you will lose any money held in that account. Sometimes employers offer a grace-period for a specified amount of funds if you don’t spend by years end. Make sure you know what your employer allows before it’s too late.
