At TaxRise, we know just how stressful the holidays can be. With tax season right around the corner, check out these easy tips you can do during the holidays to make your tax season easy and stress-free.
1. Start Gathering Your Receipts.
As the end of the year nears, getting organized is key to prepare for tax season. Start gathering your receipts now, as it may take you longer than you think. Once tax season hits, you’ll be thanking yourself for getting all of your deductible receipts in one place. Remember, not all receipts are tax deductible, so, unfortunately, the majority of those gift-giving receipts won’t be necessary. Have questions? Feel free to reach out to a tax professional to see what would be eligible for a tax deduction.
2. Working from Home? Write it Off!
Freelance work is more popular than ever. If you do not clock in and out at an office every day and instead work from home, make sure that you are aware of all the deductions you can apply against your home office. This includes, but is not limited to, portions of your real estate taxes, mortgage interest, rent, utilities, insurance, repairs, and more.
3. Give to Charity! It’ll Help You Come April.
While we all appreciate the idea of giving to charity, many of us simply feel that we are not in a financial situation to give. However, thanks to a new tax code change, giving to charity is more beneficial than ever when it comes to your tax returns. The recent tax reform code allows tax deductions for cash charitable contributions totaling up to 60% of your adjusted gross income. It’s called the Season of Giving for a reason! Pick a charity that you can gift to before the end of the year to maximize your deductions next year. Confused? Tax professionals can help you navigate your financial planning.
4. Receiving a Holiday Bonus? Defer It!
If you are expecting a large holiday bonus, you can technically defer it to the new year so you do not have to claim it on your taxes this April. Especially if this holiday bonus might put you into a higher tax bracket, your gift might end up doing you more harm than good come April.
5. Is the IRS being a Grinch? Don’t Let Them Ruin Your Holiday!
One of the worst things that can happen while you’re trying to enjoy your holidays with your family is to be targeted by the IRS. The only way to get the IRS off your back immediately is to work with a tax resolution agency. When you hire a tax relief company to help you resolve your tax debt, they become the IRS’s point of contact, which means the IRS is no longer allowed to contact you. What better way to have an actual silent night than knowing you will not hear from the IRS?
Ready to Take the Next Step
The holidays can be stressful, but when you owe tax debt, it’s even worse. The end of the year is just a reminder that tax season is right around the corner with a bundle more penalties, interest, and bills. Instead, end your year on a positive note by taking the first step toward financial freedom.
In 2019, a number of changes to our tax code will take effect. There are plenty of options to help you have an easy and stress-free tax season, but you don’t have to wait until April to take advantage.