As reported on abcnews.com, here are some tips on savings for the upcoming tax season:
- Invest in a retirement fund – most tax experts suggest this because it is an easy deduction. Taxpayers may invest in an IRA account until April 15 or a 401k plan until December 31.
- Charitable giving – this is good for your taxes and society. Taxpayers can deduct most charitable giving as well as any out-of-pocket expenses for charitable causes, including travel, parking, etc.
- Energy tax credit – if you add solar panels or any energy-efficient home improvements, you may be eligible for a tax credit (up to $1,500).
There are also many other tax credits, such as the child tax credit, tax credit for cars, and tuition/scholarship tax credits. Visit abcnews.com to view more. And remember, keep documentation for any items you intend to use as a deduction or as a tax credit.
Have any other tips or suggestions? Please share below!