End of the year tax tips: Here’s how to maximize savings before 2020 begins
Although April 15, 2020 seems a long way off, the new year means the tax season’s end will soon be upon us, and while that thought alone may strike fear into the hearts of many, there is still time to maximize savings before Jan. 1.
The Internal Revenue Service has a few suggestions for taxpayers before 2020 to help smooth along the filing process.
For starters, be sure to notify the IRS of any change of address this year and renew expiring Individual Taxpayer Identification Numbers, or ITIN, before the end of the year to avoid delays come filing season.
But more importantly, to save a little cash you might want to consider some last-minute charitable contributions.
The IRS says you have until Dec. 31 to make donations that can count toward deductions for this year.
It’s important to note, however, that donations put on a credit card before the end of the year work just fine, even if the bill isn’t paid until next year, but charitable checks need to be sent out before then.
According to TurboTax, benefits from charitable donations are even better when donating stocks or property rather than cash.
TurboTax also recommends selling off poor investments before the end of the year in order to realize losses and offset any potential taxable gains made from other investments.
This story was originally published December 28, 2019 at 11:52 AM with the headline "End of the year tax tips: Here’s how to maximize savings before 2020 begins."
