8 ways to lower your tax bill and increase your refund next year

save-on-taxes

HARRISBURG, Pa. (WHTM) – ‘Tis the season to think about turkey and taxes.

There are moves you can make now to lower your tax bill and increase your tax refund next year.

Here are eight simple ways to save:

  1. Get organized. Gather those receipts for tax deductions now so you don’t feel stressed about it or forget something later.
  2. Hold off on that bonus at work. It could bump you up into a higher tax bracket and increase what you owe. Ask the boss if you can get the extra income after the first of the year.
  3. Accelerate deductions. For instance, if you own a home and take a mortgage interest deduction, make an extra mortgage payment on Dec. 31 to increase your deduction.
  4. Donate to charity. The holidays are a great time to clean out those closets and give to those in need. You benefit with a clean home and a tax deduction.
  5. Take a class. If you’re taking a course to advance your career or build your business, you can take up to a $2,000 tax credit with the Lifetime Learning Credit.
  6. Maximize your retirement. Reduce your taxable income by contributing as much as you can to a 401K or an IRA.
  7. Spend your FSA. If you have a Flexible Spending Account and have money left, get caught up on doctor’s visits or other checkups.
  8. Buy low, sell low? If you have investments that took a hit, sell them to offset any investment gains.

Any move you make must be done by Dec. 31 of this year. Otherwise, it won’t qualify when you do your 2016 tax returns.

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