Post Tax-Day Tax Planning

Now that April 15th has come and gone, it is time to start planning for your 2017 taxes (if you have not already started).  While there is some uncertainty about what will happen with the new administration, there are a few things to consider throughout the year that probably won’t change are:

1.       Retirement Savings – Are you contributing enough to your 401(k)?  This is a great way to save tax dollars today and do the responsible thing for your future.  If your employer does not have a retirement plan you can contribute to your own IRA.

2.       Charitable Contributions – Do you have a favorite charity?  Contribute throughout the year and get a tax deduction.  Make sure you get a receipt from the charity. 

3.       Non-Cash Charitable Donations – During your spring cleaning if you want to donate some of your used clothing, toys, furniture etc. to the Salvation Army you can get a tax deduction.  If you donate under $500 worth of items, you only need a receipt.  If it is more than $500 you need just a little more info including purchase date, basis.  If the items you donate exceeds $5,000 you will need an appraisal of the items.

4.       Health Savings Account – Does your insurance plan include a Health Savings Account?  Increase your contributions.  You can contribute up to $3,400 on a single plan or $6,750 on a family plan in 2017.  If you are not contributing the maximum, consider increasing the amount you are saving for future medical expenses. 

Contact us for a personalized tax plan that fits into your entire financial strategy.