This time of year, it’s easy to get wrapped up in the holidays and push unpleasant things like tax planning into January, but believe me — a few tax tips will actually come in handy sooner than later.
For some tax decisions — such as how much to contribute to an IRA or Roth IRA — waiting is perfectly fine. You until have April 15 of next year to make your 2013 contributions. However, you should start your planning now, and we have plenty of tax tips for you to use before year’s end.
Changes to the tax code are scheduled to be minor in 2014, so you don’t need to do anything too drastic. But it still makes sense to pull as many tax breaks into your 2013 tax return as possible.
Uncle Sam doesn’t pay you interest on any refund due, after all, and effective tax rates are slightly higher in tax year 2013 than 2014 due to inflation adjustments that will raise the income levels in each tax bracket. For example, in 2013, the 28% tax bracket starts at incomes of $87,851 for an individual. In 2014, it starts at incomes of $89,351. So if you can lower your tax bill this year, it certainly makes sense to do so.
Today, we’re going to look at seven tax tips that will help you do exactly that: