Tax Tips, pt 2

It’s New Year’s Eve – the final day for year-end tax moves.

Now you can’t cram tax planning into one day. However, yesterday and today’s programs include tips to possibly lower your taxes or increase your refund.

To reduce taxable income, max-out contributions to tax-deferred retirement accounts. These include traditional 401(k)’s, 403(b)’s, or similar plans. The 2019 limit is $19,000, but people over 50 can put in $25,000.

Max out contributions to your health savings account. It’s $3,500 for single coverage and $7,000 for families. Those 55 and older can make an additional $1,000 contribution for either single or family coverage. The good news is that you can make these contributions until April 15th of 2020.

Now today’s the deadline for taking a 2019 required minimum distribution unless you turned 70 ½ this year. In this case, you have until April 1st. Just don’t miss it, or you’ll pay a penalty.

Now a benefit of being that age is that you can directly transfer funds from your IRA account to a qualified charity, up to $100,000.

And if you own your own business, you can deduct a wide range of business-related expenses. For example, a bulk purchase of supplies to get you through the next few months provides a deduction for 2019, but it has to be done today!

Now I invite you to make a year-end gift to Crown. Together we can offer hope and peace to millions of people who are hurting.

In return, I will send you our new video series: The Power of Redemptive Stewardship: 5 Keys to Faithful Living. Please give today at crown.org.

Click here for free resources to navigate the financial affects of COVID-19