Every year tax season ends on the last day of the year, and starts new on Jan. 1.
This year is no different and if you have anything to finish up, now is the time to do it so you don’t miss out on thousands of dollars.
The tax filing date was extended in 2021 for the 2020 tax year, but the official deadline was Oct. 15 if you applied for an extension.
This doesn’t mean everyone did their taxes on time, so it might be worth filing them now to avoid penalties.
Here are 6 things to do to get the most out of your 2021 taxes
Energy saving improvements to your home could get you some home improvement tax credits.
Water hears and central air are just two things that can count for the credit.
Opening a health savings account may be worthwhile.
Anything you contribute to the account is not taxed and the money can be used for medical expenses.
You can set up a 529 plan for your child’s college tuition in the future.
Withdrawing the money from the account in the future to pay tuition payments is tax free.
Up to $15,000 can be deposited for 2021.
Make sure you’re making contributions to your retirement accounts.
There are limits on how much you can deposit, so it’s good to know you’re putting as much as you can in to bolster your future.
Be sure to make the appropriate withdrawals from your traditional IRA accounts so you do not get slapped with a tax penalty.
The annual withdrawals can be made by Dec. 31.
Finally, look at your investment portfolios to be sure if anything is doing bad you can sell it and write off the loss.
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