Last Call: 2017 Tax Return Advice and What to Expect in 2018
With 2017 winding down to a close, it’s time to consider what we can do now to prepare ourselves to make the most of our tax return. You may not realize, but there are also a few matters to consider for your 2018 return in light of the tax changes passed this December. Here is some tax return advice for your next tax return.
Charitable Contributions
One of the easiest and most generous ways to add to your final return are charitable contributions. There have been so many catastrophes throughout 2017 that it is, sadly, very easy to choose one or two that you feel would benefit from your contribution. You will need to make these donations in cash or physical property.
Loan Payments
If you are able, try to make any loan payments for the month of January before the end of December. This allows you to deduct the interest for this year rather than the next. The types of loans that are eligible for this benefit include mortgage interest for both first and second (home equity) mortgages, mortgage interest for investment properties, student loan interest, and the interest on some business loans, including business credit cards.
Salary Raises and Bonuses
Getting a bonus or pay increase this month? Ask your employer if you can defer it to January. With the new tax bill, the return on taxable income will be higher in 2018 vs. 2017. Make the most of that extra income by waiting just a few more days.
Increase Your 401K Contributions
With the impending higher tax rate on its way, tax return advice will help you plan to save for your retirement by increasing your 401K Contribution. Less income will be taken from your weekly or bi-weekly pay check so why not use that extra cushion to bump up your retirement savings plan. Saving now will only be beneficial later.
Interested in learning more about how to save for your retirement? Contact Dewitt & Dunn today to schedule a complimentary appointment with one of our experts.
Related Articles from DeWitt & Dunn Financial Services and Annuity Watch USA
Disclosure: DeWitt & Dunn does not provide tax/legal advice. Please consult with the appropriate professional.
Links to third-party websites are provided as a convenience. DeWitt & Dunn does not endorse nor support the content of third-party sites. By clicking on a third-party link, you will leave this website where privacy and security policies may differ from those practiced by DeWitt & Dunn.
Watch and Listen to our Financial Experts on:
& More
Other websites by DeWitt & Dunn Financial Services:
