Year-end Tax Planning Tips

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Call us 1-877-542-2130

Taxes are likely the last thing on your mind before the end of the year but for individuals payments made before December 31st can allow for deductions or credits for the current year ratherthan a deferral to next year.

Consider these (2) types of payments that individuals normally can claim:

Maximize medical expenses

While medical expenses must be paid by Dec. 31 to a claim a tax credit for 2016, the related good or service doesn’t always need to be acquired in the same year.  You may want to do this to exceed the minimum threshold

This provides an opportunity to prepay certain items for 2017 and claim them for 2016, if it enables you to exceed the minimum of 3% of Net Income.  For couples either spouse can claim the medical expenses so the 3% of Net Income of each spouse is very important consideration.

Maximize charitable donations

If you’re going to make a qualified charitable donation, and if you make the payment before the end of the year you will get donation credit on your 2016 taxes.

 

 

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