Ho, Ho, Ho! You better watch out.
You better not cry. But you better make some year-end tax moves this December or April 15 could turn out to be the tax equivalent of Santa Claus putting coal in your stocking!
Click image to hear a musical Santa message from Bruce Springsteen.OK, St. Nick can't deliver a festively wrapped tax return for you (unless he's even more magical than I think!) to file next year, but he does have a tax connection. His tracking of naughty and nice boys and girls basically is the same method that the Internal Revenue Service uses. That's why we all need to be nice, especially to ourselves, in this final month of the year by making some important tax-saving moves.
Dec. 1: Earlier this year, we made it through the first filing season under Tax Cuts and Jobs Act (TCJA) provisions.
If things didn't turn out so well for you, now's the time to
find a tax preparer who can help ensure your 2019 return filing goes more smoothly. By
picking the perfect tax professional before the coming tax-filing season rush, your adviser can help make sure don't miss any year-end deadlines that could affect your final tax bill.
Dec. 3: Did you get a part-time
seasonal job to earn extra cash for the holidays?
If you're paid as a
contractor instead of as an employee, remember that you'll be responsible for income taxes due on the money, as well as any self-employment taxes. The same tax considerations also apply if you're part of the
gig economy, but you'll also want to check out ways to maximize your
side hustle earnings.
Dec. 7: Medical itemized deductions survived the TCJA changes, but there's still a limit on how much you can claim on Schedule A. In 2018, that threshold was
7.5 percent of adjusted gross income. But
unless Congress acts soon, you'll need to have health-related expenses of more than 10 percent of your AGI before you can claim them. Start tracking down those receipts now!
Dec. 10: Does your job, either full-time or seasonal, include
tips? If so and you received at least $20 in gratuities in November, use
Form 4070 to report them today to your employer.
Click image
to calculate how much to leave your server.
And don't forget to include the
value of out-of-the-ordinary tips, such as event tickets or gift certificates that are common this holiday season.
Dec. 13: What's scarier than Friday the 13th? Falling for one of these
13 tax scams. Remember, con artists are working every day to steal your identity and money. Be careful out there!
Dec. 18: School may be out for winter break, but doing some tax homework now can earn you a top tax grade. Pay tuition for 2019 classes that will start in the first quarter of next year by Dec. 31 and you can use those costs to claim the
American Opportunity Tax Credit.
Dec. 21: It's the last weekend before Christmas! That means holiday treats, final decorations and frantic, crowd-fighting last-minute shopping! Or you can make some easy tax-favored gifts, like opening a
Roth IRA for your child or grandchild who earned some money from a summer or after-school job.
Dec. 24: Christmas Eve!
No taxes tonight. It's early to bed for kiddies of all ages. Santa's on his way!
Click image to watch
Santa's delivery route as tracked by NORAD.Dec. 25: Merry Christmas! My gift to you is another day without tax thoughts.
Just enjoy the holiday and your family and friends.
Dec. 26: Happy
Boxing Day. This unofficial holiday on
St. Stephen's Day is celebrated by additional giving. If you donate to your favorite charity on this day or any other by the end of the year, you can claim the itemized deduction when you file your return next spring … as long as you follow the IRS'
donation tax rules.
Dec. 31: This is it. The drop-dead deadline to make most 2019 tax moves. So do a quick check.
Although the TCJA now limits — and eliminates — some itemized deductions, depending on your personal filing situation you might want to look at Schedule A options. It could still be worthwhile to make your January mortgage payment early so you can deduct the loan interest this tax year. Ditto with your
property taxes if you're not near the $10,000 cap.
Don't forget to zero out your
medical flexible spending account (FSA) if your employer doesn't offer a grace period or
rollover. And if you must take a
required minimum distribution (RMD), do so — or directly
donate it — by year's end.
Done all that and more, like checked out all the
deductions that don't require iteming? Great! Now go out and have fun at your New Year's Eve party.
Small Business Tax Calendar: Important
filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS'
online calendar page and view the full year's important business and individual tax dates in
IRS Pub. 509.
I strongly recommend volunteering after retirement. My non-paid volunteer side gigs can be a pain on occasion but overall they are helping others less fortunate than I and that's worth the considerable effort involved. Plus, in my case they dovetail with my lucrative paid side gigs consulting to the point that I've had to turn down generous job offers to run some of the places I volunteer at. A common problem with retiring is feeling irrelevant and not having a good "why" going forward in life. Although I haven't felt that at all in the two years since I early retired I think the four paid side gigs and nine volunteer ones I'm involved with provide me with the why and the relevance just as much as my former career did, with only about one percent of the stress I used to endure. Great post, volunteering gives the volunteer just as much of a gift as the people you will get to help!
Posted by: steveark | Monday, September 11, 2017 at 01:16 PM