Season’s Greetings from Roxanne Coffelt CPA LLC
Roxanne Coffelt CPA LLC wishes you and your family a wonderful Holiday Season, and a happy, healthy, and peaceful New Year 2019!
We are gearing up for a busy tax season next year, but before that happens, we want to share a few last-minute tips on actions you can take by December 31, 2018, that might lower your tax bill for the year:
1. Put some money in an Indiana College Choice 529 Plan for your children or grandchildren. It gets you a 20% credit (up to $1,000) on your Indiana return.
2. If you have a flex plan with money leftover, be sure to use that money before it's gone by seeing the eye doctor, dentist, or other healthcare you have been putting off.
3. If eligible, make a deductible contribution to your IRA or another qualified retirement plan.
4. Sell that loser stock in order to deduct the loss (up to $3000 per year.)
5. If you can itemize (and that's a capital "IF"), get some extra deductions with additional charitable contributions or by making an extra mortgage payment.
6. If you own a business or a rental you might be able to increase deductions by accelerating some expenses into 2018.
7. If you qualify for an HSA (Health Savings Account), you can't go wrong by putting in the maximum contribution allowed. It is deductible for anyone who has a qualifying high-deductible plan regardless of income or whether they itemize.
8. You can get a 30% tax credit for installing qualifying alternative energy property such as solar, wind, or geothermal.
Of course, now that the individual tax rate is temporarily really low, you might actually want to accelerate your income to take advantage of the low 0 and 10% brackets by taking retirement distributions or converting traditional IRA funds to a Roth.
If you have any questions about whether or not you can take advantage of these deductions or credits, please don't hesitate to call our office at (574) 267-8853 or consult with your tax advisor.
For any more assistance during the holiday season, feel free to get in touch with us by clicking here.
Happy Holidays from Roxanne Coffelt and family!