3 Tax Planning Tips to Follow
3 Helpful Tax Planning Tips
Write Off Small Business Expenses
Freelancers and small business owners are eligible to write off expenses for any equipment purchased in the year prior to filing taxes. These include laptops, printers, mobile phones, ink cartridges and office supplies. Just make sure you keep copies of all receipts to verify your purchases.
Use All FSA Funds
If you opened a flexible spending account (FSA) through your employer, use the funds by Dec. 31 of this year. This is a good time to spend the remaining balance on must-haves such as non-prescription medicine, dental visits, contact lenses, glasses, and more. It's important to use FSA funds by the end of each year because they generally do not roll over to the following year.
Make Charitable Donations
The IRS allows tax filers to deduct the fair market value of items donated to charitable organizations. The caveats are that the donations must be made by Dec. 31, and the charity must meet IRS eligibility requirements. Contributions and cash over the amount of $250 require written confirmation from the charity of receipt.
These are just a few tax planning strategies that can help alleviate financial stress when it's time to file federal and state income returns. If you need help preparing your forms, turn to the team of professional accountants at Bergamo Tax & Financial Solutions. To schedule an appointment, give them a call today at (860) 274-1655. Visit their website for more information on their customized financial services.