Tax time is still months away, and it's probably the last thing on your mind. But you can save a few bucks before the end of the year.
You probably spent a good amount of money during the holidays, but the small fortune you spent on gifts could help come tax time. You can deduct all the sales tax you've paid to the state for the first time this year. For example, if you make $50,000 a year, you can deduct from $690 to $976, depending on your exemptions. However, one shopper asks her husband, "What are you going to do about taxes honey? H & R Block."
Another shopper says, "The holidays are not over yet. New Year's is fixing to get here and I don't want to think about it yet, not yet."
If you're still in the shopping mood, you should make big purchases before the end of the year. Sales tax on a $20,000 vehicle is $1,250, which can be a big help when it comes to deductions. The same goes if you're thinking of handing over to a charity. CPA for Mason Warner & Company, J Reid Warner says, "It's possible to do it on the last day of the year, it's better to do it a couple days before and make sure it clears everybody's bank account."
Also, if you're a homeowner, make sure your property tax is paid, that way you can use the deduction this year. Warner said, "Just see if the property tax has been paid. Sometimes the mortgage company delays the to the end of the year and that will cost you a deduction next year if they do that." Warner also says if you have stocks and you're down, it may be a good time to sell. You can deduct a loss up to $3,000.
Warner says if your thinking of buying supplies for a business, do that before the 31st as well. He says tax laws are tightening and you'll receive more of a deduction this year than you would next year. You can also find out more about taxes and specific information at ( www.irs.gov).
Your Tax Questions Answered