Quick… there are only have a few short days left in 2015, and there is a few end of the year money decisions that you need to be thinking about before the clock strikes midnight Thursday. Why is this important? Well, I don’t know about you, but I like paying less in taxes each year. In order to do that, I’ve got to maximize my deductions and write-offs so I can reduce my taxable income as much as I can for the year.
I know you really don’t want to think about money decisions during the holiday week, but I promise you that if you give me a few minutes you might be able to save yourself a bundle. Whether you are looking to save a few bucks or a few thousand, check out this podcast with an in-depth explanation of all for this tips and tricks.
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- Flexible spending account-
- Your account balance will expire at the stroke of midnight. Make good use of those funds in your account so you don’t lose the money you’ve socked away.
- Contribute to your 401(k) –
- You can contribute up to $18,000 this year which lowers your taxable income. BINGO!
- Another idea is to bump up your contribution percentage…and then leave it there for 2016.
- Charity Contributions–
- Remember, You MUST have a receipt, bank record or some sort of proof that you donated in order to write off your contribution.
- Your donation has to be to a qualified 501c(3) non-profit organization (and not just to your best friend who needs some cash).
- Donations of stock or other non-cash property are usually valued at the fair market value of the property. Clothing and household items must generally be in good used condition or better to be deductible.
- If you are donating more than $5,000, you must have an appraisal from an accredited appraiser.
If you’re looking for an awesome FREE e-course on How to Build a Better Budget, be sure to sign up! Class starts on January 4th, and it’s going to be a great 4-weeks filled with a TON of awesome information to get your budget in check for 2016 and supercharge your savings!
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- Maximize your biz deductions by making any big purchases before the end of the year.
- Pay your January car payment in December to write it off for 2015.
- Pre-pay your January mortgage payment in December and write it off which will boost your interest deduction for 2015.
- Dr visits-
- If you’ve met your deductible and out-of-pocket max then try to squeeze in any last minute doctor visits before the end of the year.
- FYI: If you don’t know what your deductible and/or out-of-pocket max, make sure you know those numbers.
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Shannah Compton Game is a Money Wellness expert, host of the to-rated Millennial Money podcast, and CERTIFIED FINANCIAL PLANNER with an MBA. Millennial Money has over 15 million downloads in 164 countries. Shannah’s years of experience as a skilled Certified Financial Planner have set her on a mission to revolutionize how people think, act, and feel about their finances…and have some fun doing so.