After all, April 15th is four months away. Why would you want to think about tax preparation when being with your loved ones is far more appealing?
Truthfully, I know from experience that most people aren’t thinking about taxes this time of year. If they were, they’d be getting their receipts and other paperwork in order. It may be a nobrainer, but you’d be amazed at how many individuals wait to the last minute to do so.
Frankly, other than temporarily increasing your contributions to your 401 (k) or Individual Retirement Account before this year comes to a close, because it can help decrease your taxable income for 2015, or calculating your tax liability now if you have an approximate idea of how much you owe, you can start putting some money aside to help lessen the pain there’s not much you can do as far as what you’ll owe the Internal Revenue Service in April. But here are two tax tips for the 2016 calendar year that you should seriously start thinking about:
Adjust your tax withholding status to match your taxable income. By not adjusting your tax withholding status to the lowest number possible, you’re actually allowing the federal government to borrow money from you for free. Americans typically don’t do this because we love getting refunds. But wouldn’t you rather have more take home money in your paycheck?
Think about heeding these tax tips.
Make end-of-year charitable gifts of stock early in the New Year. You want to get the full benefit of any tax deductions you’re entitled to take. If you give away appreciated stock to a tax-exempt charity, you can deduct the full market value, and you won’t owe any capital gains tax because it’s the tax-exempt charity that will ultimately be selling the stock.
(George Sotrillis is the owner of George Sotrillis EA LLC and Integrated, Inc. He is located at 3922 Bell Blvd, 1st Floor, Bayside NY 11361, and can be contacted directly at 718.352.4680, or by email at firstname.lastname@example.org) __________________________________________________________________
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