With the end of the year slowly approaching, there are a lot of things to look forward to. The holidays, your New Year’s resolutions, the end of another busy Q4….but one thing most people don’t look forward to are their taxes. But, keep in mind, there are things you can do to best prepare yourself for that crunch time to maximize your write-offs and lower taxable income.
Here are 4 tax friendly tips to implement before the end of the year:
1. Contributing to your 401K will help lower your taxable income. Employees can save up to $18,000 by doing this!
2.Contributing to your IRA will also lower taxable income. You can contribute $5500 to $6500, depending on your age.
3. Selling a losing investment can generate a tax deduction.
4. Making an extra mortgage payment, i.e. paying January’s payment early.