Tax season is a time many people either love or dread.
It usually comes down to how much you’re owed and looking forward to that payout, or dreading what you owe the IRS.
As the year comes to a close, there may be some ways to get that tax bill down or even collect a refund according to TurboTax.
Here are ten tips on making the most of next tax season
Defer your bonuses. If you’re expecting a sizeable bonus, it could bump you into a higher tax bracket, causing you to owe more money.
Delay that income until the start of next year and see if your boss will pay you that bonus in January. That way it’s close to the end of the year but won’t be on next year’s taxes.
Accelerate your deductions and defer your income. This means make an extra mortgage payment in Dec. to be able to deduct it in 2022 on your taxes.
You can donate to charity and use that as a tax write off while also helping those in need. Clean out your closet and hand your old clothes over to a qualified charitable organization and itemize your tax deductions.
The CARES Act is temporarily suspending the limit of how many donations you can deduct when you itemize your deductions.
Take a class and get a tuition bill while paying next semester’s tuition before the end of the year. You could get a tax credit worth $2,000.
Make contributions to your retirement account to reduce your taxable income.
Related: Parents be warned, you may need to pay back all child tax credit payments depending on your child’s birthday
Use up your flexible spending account and get your doctors visits out of the way so you don’t lose any money.
If you lost money you’ve invested, you can sell the stocks and offset your losses against your gains, lowering the taxes you’ll need to pay on your investments.
Adjust how much in taxes are withheld from your paychecks if you’ve seen a major life change like having a child or losing income.
Look into Other Dependent Credit if you care for someone else like a grandparent. You can claim up to $500.
Finally, collect all your receipts for your home property taxes and large purchases. You could deduct state and local property taxes worth up to $10,000.
Get the latest headlines delivered to your inbox each morning. Sign up for our Morning Edition to start your day. FL1 on the Go! Download the free FingerLakes1.com App for Android (All Android Devices) or iOS (iPhone, iPad).