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4 Tips to Get Ahead of Your 2018 Tax Return

The 2016 tax filing season is almost over. But don't lose momentum - plan for the 2017 season and save a bundle!

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Tax Tips for 2018: Bunching

Tax Tips for 2018: Bunching
Source: Shutterstock

You typically can generate more tax savings if you itemize your deductions, but many people aren’t able to meet the minimum threshold. Also, there are some deductions — such as medical expenses and unreimbursed employee expenses — that only allow for certain amounts above a fixed percentage of your income.

But there’s an interesting strategy to deal with this: bunching.

In one year, you bunch together a number of qualified expenses. Maybe you double up on paying your property taxes, or get an additional pair of glasses that you don’t quite need yet, but think you will next year. By piling up those expenses to a certain threshold, you qualify yourself for itemized deductions.

Then the next year, when you’d have far fewer expenses to itemize, you take the standard deduction. Then repeat and rinse this process every two years.

Tom Taulli, who is a JD and Enrolled Agent, has his own free iOS app to estimate your tax refund, which is at PathwayTax.comFollow him on Twitter at @ttaulli


Article printed from InvestorPlace Media, http://investorplace.com/2017/04/4-tips-to-get-ahead-of-your-2018-tax-return/.

©2017 InvestorPlace Media, LLC