Time is Running Out
If you’re planning on saving on your annual tax filings, time is running out. With only about two months left in the calendar year, it’s time to look at your current liability and consider some options to lower it. A couple of notes before we dive into potential savings, first of all the standard deduction was raised to $12,000 for individuals, and $24,000 for married joint filers. Also there was the elimination of personal exemptions and trimming individual income tax rates.
First and an important way to potentially save on your taxes is to watch your paycheck. The IRS and Treasury have updated the withholding tables, and these tables with serve as the guidelines for employers to ensure the correct amount of income tax is being withheld from your pay. By double checking the correct withholding, you can be sure that you won’t be owing extra taxes come April.
Another way to save on your taxes is to give charitable donations and gifts. If you’re itemizing and just short of the newly doubled standard deduction, consider donating a large amount of food or like items to reach the threshold. You can make your 2018 and 2019 donations in one year, so if it makes sense to double to cross the threshold consider doing so.
If you have any questions about potential tax issues for closing out the year, or you’re wondering about lowering your tax liability. Contact us at the Center for Financial, Legal & Tax Planning, Inc.