Now that we’re through the holidays, many people are scrambling to get the most tax savings they can before the end of the year. Metairie CPA Gina Rachel with the Louisiana CPA Society says charitable donations are one way to save on your taxes.
She says donations will still count even if you donate on your credit card and don’t pay it until January. She says monetary donations aren’t the only way to give.
“It’s a great time to actually clean out your house because you got all these gifts from Christmas. You can actually give some of those things away for non-cash donations as well,” Rachel said.
Rachel says taxpayers could have a tax savings of anywhere from 15% to 30%. She says at this time of year people also try to accelerate any deductions that might expire next year.
“Mortgage insurance is going to expire. So if you want to make that mortgage payment before the end of the year, instead of paying it in January, you may be able to get that deduction. If you pay it in 2017, you’re going to lose that,” Rachel said.
Rachel says higher education deductions will expire next year as well. She says even if you’re too busy to do anything before the end of the year, you still have options to save on their taxes.
“By funding your health savings account if you’re eligible to contribute and funding your IRA contributions as well, and you have until April 15 or the filing of your tax return to do that as well,” Rachel said.