New Tax Implications for the New Year!

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With January almost gone, the new year vibes seem to be dying down. However, the new tax provisions might still be a little unclear to a lot of people. Also, you might have your personal plans for 2019 – a new kid, a house, or maybe new investments. All of these have their own tax implications. Ignorance is never bliss when it comes to taxes because the more aware you are of the latest tax laws, the more you can save.

Being aware of the latest tax provisions and all the benefits you are eligible to also ensures that you come up with the most efficient tax planning strategies. This further helps you save generously on your overall tax liability.

Here are some more steps you can take to save on your taxes!

Write it down

It might sound insignificant, however, keeping a record of all your taxes, documents, and expenses will ensure that you have the most efficient savings.

Also, keeping a record of your expenses helps you plan your tax savings more efficiently so that you have documented proof for everything. Thus, it is advisable to keep all tax documents at a safe place which is also easy to access. This will help you at the time when you need to finally file your return.

Income tax credit

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As per sources, people with kids and income under $54,998 in 2018 and $53,930 in 2017 are considered eligible for Earned Income tax credit. There is an even lower tax bracket for people who don’t have kids. As it is, almost 20% of the people eligible for this fail to claim its benefits.

Thus, if you are eligible, don’t miss out on cashing this wonderful opportunity. It will help you generate a lot of tax saving.

Retirement planning

Retirement plans are a great way to not only ensure your financial future along with helping you efficiently plan your taxes. Usually your employer will themselves offer you a brilliant retirement plan, however, if they don’t, you can always contribute to the ones offered by IRA or Roth IRA.

A contribution up to $6500 for folks older than 50 years and up to $5,500 for younger people can get you easy tax deductions and also lower your overall taxable income.

The self-employed can choose to contribute up to 25% of their compensation or $5500 – whichever is lower, to SEP IRA until the final deadline to further lower your taxable income.

No good deed goes unreturned

Every time you make a charitable donation, make sure you check in with your accountant. Most donations result in efficient tax deductions.

If your donation amounts to more than $250, you are supposed to receive a receipt or acknowledgment proving your contribution. Also, you can also enjoy tax deduction if you have used your credit card to make donations up to the 31st of December.

For further assistance with your tax planning, you can always contact us at @ tax@mytaxfiler.com. You can even contact us at (888)-482-0279 for a consultation over the phone or email to us at tax@mytaxfiler.com.

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