It is the time of year again for taxpayers to do tax filing online for 2019. However, thanks to various tax tips, it will ensure moments of ease for you. Yes, the following post helps you know wonderful tips and suggestions to give you ways and means of how you can actually save on your tax. Let’s now take a look the best tips of year-end for tax filing online:-
Make better use of capital losses
Do you have stocks that suffered losses? If yes, then it is the time for you to sell them as through this exercise you will be able to deduct up to $3,000 on your federal taxes. There is the following instruction which you supposed to follow:-
- You shouldn’t have purchased the same one or similar to it within the last 30 days before or after sale. Or else you won’t be able to ensure the deduction.
Consult your Tax Advisor
It is the perfect time for you to get a consultation with your tax advisor. Because even they are free at this time of the year right before the next set of tax filing forms season starts. This will give you a clear cut indication after having a detailed meeting with the advisor who will help you out with the strategies to reduce taxable income through retirement contributions or itemized deduction.
Use the balance in your flexible spending account
As a worker, do you have a flexible spending account? If yes, then the balance which is in there should be used or else you are going to lose it anyway. As you may be well aware that there is a provision where the balance (if unused) will automatically go back to the employer if left.
Sell stocks that have registered appreciation
Do you know that the year’s end is also the perfect time for you to sell the stocks which have registered appreciation? Yes, indeed especially if you are in 10% and 12% tax brackets.
Do investment in qualified opportunity funds
Do you know that there is an awesome opportunity where you can simply reinvest your money towards purchasing qualified opportunity funds? Yes, in fact. Since these are the funds that were the result of the Tax Cuts and Jobs Act of 2017. They mainly focus on economic growth along with creating jobs for needy communities.
Make use of your charitable contribution
In the year 2019 of tax filing forms, the married couples who have filed jointly were subjected to a standard deduction of $24,400. The deduction for the single taxpayer stands out at $12,200. The recent Tax Cuts and Jobs Act of 2017 have indeed doubled the standard deduction. This has been quite a noteworthy announcement and gives ways for taxpayers to move accordingly.
Finally, the aforesaid tips add to your peace of mind by lessening the amount of tax filing online, which you are supposed to pay. This will surely give you a head start of managing your finances with more professionalism and maturity in subsequent years. These tips will help you save a sizeable amount of money quite like the way you do while applying for a tax refund.