Sure, the tax year is coming to an end, but there are still steps you can take to lower your 2014 taxes. I found an excellent article on year-end tax tips that can help you save time and tax dollars. They can even help you save for retirement. Who doesn’t love to save money?
Here are 3 year-end tips from the IRS to help you save:
- Start a filing system.
If you don’t have a filing system for your tax records, start one. It can be as simple as a shoebox, or more complex like folders and spreadsheets. Keeping things filed will save you much time and energy in the long run.
- Make Charitable Contributions.
If you plan to give to charity, consider donating before the year ends. That way you can claim your contribution as an itemized deduction for 2014. Be sure to save your receipts. You must have a written record for all donations of money in order to claim a deduction. (Refer to Tip #1!)
- Contribute to Retirement Accounts.
You must contribute to your 401(k) or similar retirement plan by December 31st to count for 2014. On the other hand, you have until April 15th, 2015 to set up a new IRA or add money to an existing IRA and still have it count for 2014.
For more in-depth reading on these topics, visit www.IRS.gov. We here at Nakata Consulting are always here to help, too. Please don’t hesitate to contact us with any questions.
