Can you believe the end of the year is already right around the corner? This year has definitely flown by. With that being said, your finances may be on the backburner. However, you need to make sure you are on track with your taxes before the year ends. In this article, we are going to go over some year-end tips for your taxes that are bound to set you up correctly for 2021. January is not far away, and tax season will follow shortly thereafter. Keep reading to learn more!
- Donate to Charity
Charitable giving is a great way to receive tax write-offs. Not only are you giving away things that you no longer need anymore, but you are able to receive a tax deduction in exchange for your donations. Next month is usually the most popular month for donations, as many people are trying to boost their finances and receive a higher tax benefit.
- Maximize Your Retirement Account
This is one of our key tips for taxes before the end of the year. By maximizing your contributions to your retirement account, you are able to lessen your taxable income, meaning you will have more to save for the future. Whether you have a 401(k), IRA, or other type of retirement account, this is a great option that will help you in the long run when it comes to having enough in your savings for retirement.
- Get Rid of Investments
As a result of the coronavirus pandemic, it is likely that some of your investments in your portfolio are worth less than they were before. Rather than hold onto them, sell your investments and take advantage of the loss. If you sell a stock at a loss, you are then able to offset capital gains. This means that you might be able to cancel out what you gained and “erase your tax liability,” (Motley Fool).
Now, as you can see, these three tips are extremely important as we near the end of 2020. While this year has proven to be a challenging one, you can turn that challenge into something better for your financial future. By following each of these three tips, you are bound to be ready for 2021 in the best way.
As we reach the end of this year, we want you to know that we are here for you for the good times, as well as during the times of crisis. Heritage Wealth Management is happy to give you the knowledge and tools you need to be successful and confident in your financial future. If you are ready to learn more tips like these before the end of the year, give us a call at 800.620.9330 and visit our website at https://www.hwmcorp.com/
Sources:
https://www.fool.com/taxes/2020/11/02/dont-wait-until-the-end-of-2020-to-make-these-key/