As the year comes to an end, you may be focused on getting into the festive spirit, entertaining friends and family, and finishing off your gift list. However, with tax season not too far away, it’s a good idea to carve out some time to think about your upcoming return. Meeting with a professional tax service now will allow you to strategize on last-minute ways to minimize your tax liabilities. Here are a few tips that can help you save money, making it easier to recover from all your holiday spending.

How to Minimize Your Taxes During the Holidays

1. Defer Extra Income

If you worked hard this year and expect to receive a sizeable bonus, you may want to ask your employer if you can defer it. While the extra income would be nice to have when shopping for gifts, it could bump you into the next tax bracket and increase your IRS obligations. If your boss is willing to give it to you in January instead, you can avoid paying extra taxes, and you could also offset some of your holiday expenses.

2. Donate to Charity

With this being the season of giving, there’s no better time to donate to your favorite charity. Doing so will allow you to help those in need, while also taking advantage of the charitable donation tax deduction. If your tax service suggests itemizing your deductions when filing, you can claim both monetary and non-cash donations made to qualified organizations. If you volunteer, you can also deduct the mileage driven to and from the charity.

3. Maximize Your Retirement Contributions

Individuals can contribute up to $6,000 to their 401(k) and IRA retirement accounts in 2019. If you haven’t reached this limit yet, consider increasing your contributions as much as possible. This will help you build up your savings sooner, and it'll also provide a tax break at the same time.

Before you become fully immersed in yuletide cheer, contact Tostrud & Temp, S.C. to discuss your taxes. They offer more than 120 years of combined accounting experience and are available to provide you with end-of-year tax planning recommendations to help reduce your bill. Countless residents throughout La Crosse County, WI, rely on their expert tax services for accurate and timely filings. Call (608) 784-8060 to schedule an appointment, or visit them online to learn more about their personal tax services.