taxes

6 midyear tax moves to make

Take advantage of the usual tax breaks
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There are several tax moves you can make each year to reduce your tax bill.

If your workplace offers a 401(k), enroll or bump up your contributions. This money comes out of your paycheck before taxes are calculated and tax on the earnings is postponed until you take it out in retirement.

While signing up for your retirement plan, make sure you employer has your correct withholding information. If you get a large refund or owe the IRS a lot each April, adjust your withholding.

You don't have to wait until the end of the year to donate to your favorite charity. Most nonprofits would love to get some cash or useful property during the summer when donations tend to drop off. As long as you make the gift during the tax year, you can deduct it when you itemize your expenses.

Your donations are just one part of a bunching strategy, in which you look at qualified deductions and make plans to maximize them. Set that up now.

And if you haven't created a tax filing system yet, do it now. Being organized is the easiest and best way to make sure you don't waste any tax breaks.


 

 

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