5 ways to reduce your taxes for 2016 year

Photo: Depositphoto

Despite the string of holidays, sales and Christmas approaching, the last weeks of December are also an opportunity to reassess your tax situation. Experts Go Banking Rates They gave 5 simple tips that can help reduce the amount of taxes that will have to be paid next year. Hurry up, everything needs to be done before the end of this year.

1. Make charitable contributions

Taxpayers who have made contributions before December 31 can count on deductions. Be sure to keep all receipts for submission to the tax authorities. It should be borne in mind that there are certain restrictions on the amount of donations. Also make sure that the charity is accredited by the IRS. Also, experts recommend looking for not just charitable funds offering tax deductions, but those where you can take advantage of tax breaks. You will still receive a deduction, but there is a chance to count on 50% -tax tax.

2. Combine medical expenses

If your medical and dental expenses exceed 10% of your family's gross income, you can qualify for deductions. That is, if you are planning expensive procedures next year or are waiting for a bill, try to pay the costs before the end of this year. You may have more than 10% and get a deduction.

Photo: Depositphoto

3. Take advantage of small business owners

For details on preferential taxation for small businesses, check with your accountant.

4. Pay property tax in advance

Keep in mind that if you pay your bill for 2017 a year before the end of 2016, you can expect a refund soon. This is especially important if you earn a fairly large amount in 2016.

5. Create a small business retirement plan

If you own a small business and are considering opening a 401k retirement plan for your employees, do it in 2016. You can make all payments before filing your tax return.

Photo: Depositphoto

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