Kevin E. Thorn
Many of the steps you will need to take to reduce your 2018 taxes will have to be taken right away, preferably before the end of 2018. A Maryland tax attorney can provide you with help creating a personalized plan to keep your taxes as low as possible for 2018. Some of the year-end-tax moves you should think about taking now include:
If you have a flexible spending account, there is a chance you could lose the untouched FSA funds if you don’t spend them by December 31. Find out if your company has a use-it-or-lose it rule or if it has adjusted in accordance with U.S. Treasury rule changes that allow up to $500 in excess money to carry over to the next benefit year. If you have to follow the use-it-or-lose it rule, spend the money in your FSA before it is gone.
While you have until the April 2019 tax deadline to contribute to IRA accounts, you must get all of your elective contributions to your 401(k) made by the end of the calendar year. If you want to make sure you are saving as much as possible for retirement — and getting as big of a tax break as possible — up your contributions now so you can get your investments made before the deadline.
You are allowed to deduct mortgage interest from your taxes if you itemize your deductions. You can write off all of the interest that you pay during the course of a calendar year. This means if you make your January payment a little early, you will have 13-months of payments to deduct. Not only will you get a tax boost, but you’ll make sure you have claimed the full mortgage deduction in case anything changes with this deduction if tax reform passes.
If you have investments that you know you want to sell because those investments are performing poorly, consider harvesting your tax losses by selling the assets that you no longer want to own. You can claim the losses and use them to offset capital gains or to offset up to $3,000 of your income. Unclaimed losses can carry over to next year as well.
You should contact an experienced attorney as soon as possible so you don’t miss out on the chance to claim tax deductions and tax credits that could save you money.
Kevin E. Thorn, the managing partner of Thorn Law Group, is recognized as a leader in his area of practice throughout the country and across the globe. His clients are individuals, tax professional...
