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Updated by Kevin Thorn on May 01, 2018
Headline for End of the Year Tax Moves to Make Right Now
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Kevin Thorn Kevin Thorn
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End of the Year Tax Moves to Make Right Now

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:

1

Use up the remaining balance of your FSA accounts

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.

2

Max out your contributions to tax-deferred retirement accounts

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.

3

Consider making your January mortgage payment early

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.

4

Harvest your tax losses

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.

6

Speak to an attorney about your taxes

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.