The end of the tax year is only a month away, but that’s still enough time to make year-end financial moves that could reduce your liability. Whether own a business, experienced a reduction of income, or earned much more than usual, taking the right actions at the end of the year could save thousands of dollars and simplify your tax preparation. The following advice will help minimize your exposure and maximize your deductions.

A Guide to Year-End Taxes 

1. Defer Income

If your income was higher than usual this year, deferring additional payments until January can lower your tax obligation. While putting off regular wages and earnings may not be possible, deferring year-end bonuses and payments for large contracts is much easier, especially for business owners and freelancers. This tactic is particularly useful if you expect to earn less or qualify for more deductions in 2020 than you did this year.

2. Maximize Donations & Investments

401(k) and traditional IRA contributions are tax-deductible, lowering your tax bill now, while creating wealth for your future. If you haven’t already maximized your contributions, there’s still time to put money in your accounts and lower your bill. Those who itemize their deductions can also save by increasing their charitable donations, especially if you give appreciated stocks or other valuable property.

3. Make Deductible Purchases

Business owners planning to make capital investments or improvements to their property can maximize their deductions by making purchases before the end of the year. Individual taxpayers can also take advantage of energy efficiency credits by making improvements before tax preparation season begins.

As one of Texarkana’s most established tax preparation firms, Erie & Associates, P.C. in Bowie County, TX, provides detailed guidance and dedicated service to individuals and businesses throughout the area. Whatever your financial situation may be, you can rely on their team to take the stress out of tax preparation and ensure you get every deduction for which you qualify. Visit their website to learn how they can help with your taxes, or call (903) 792-6651 to make an appointment today.