As tax season approaches, financial advisors are advising taxpayers should start preparing to file their taxes now.
“Most people think it’s March or April when they really have to start thinking about taxes, which makes sense, because that’s when the returns and the annual payments are due,” Noah Rubin, with Wells Fargo in Boca Raton, said. “But if you’re starting to think in March or April, you’ve already missed out on activities that have to be done before year’s end.”
Rubin said one of the first things taxpayers should do this week is call their tax preparer if they’ve had any big life changes this past year.
“Whether it’s sell a house, buy a house, having a baby, getting an inheritance, sell a business, lose a business,” he said, “share it with your tax professional now, so that they can give you direct guidance on how to save and minimize your taxes.”
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Rubin also had advice for those with retirement plans, such as a 401(k) or 403(b).
“Max out the contributions before year end,” he said. “It must be done before year end, so that you can put money away toward retirement and also get that income tax benefit.”
Rubin said now is also the best time to give to charity.
“Another one is charitable contributions. This time of year, it’s a great opportunity to write a check, give money to a charity that you care about and also give yourself a gift in the form of a potential tax savings,” he said.
A few tips, that could get you ready for tax season and save you big bucks.
“The real take away is December is the time to think about taxes, don’t sit on it don’t wait,” Rubin said. “We all have a lot going on, but call your tax preparing today and talk through it.”