Increase Your Tax Refund

Lawndale News Chicago's Bilingual Newspaper - Business

Lawndale News Chicago's Bilingual Newspaper - Business

Defer bonuses: If you are expecting a year-end bonus, consider that this extra money in your pocket may bump you up to another tax bracket. Ask your boss If you can claim your bonus in January, you will still receive it close to year-end, but you won’t have to pay taxes on it when filing your 2019 taxes.

Accelerate deductions & defer income: There are a handful of tax deductions that are recognized in the year in which you pay them. For example, if you own a home, get a mortgage interest deduction, and if you make an extra mortgage payment on December 31, you may be able to claim the additional interest paid as a tax deduction in the tax year paid.

Donate to charity: The holiday season is a great time to clean out your closet and household items that you no longer use to give to those in need. You can help and reap the benefits through a tax deduction for non-monetary and monetary donations and donations to a qualified charitable organization. If you volunteer at a qualified charitable organization, you can also deduct your mileage (14 cents of every mile) driven for charitable service.

Maximize your retirement: If you contribute to a 401(k) or a Traditional IRA, you can reduce your taxable income and save for the future. If you are self-employed and contribute to a SEP IRA, you can contribute up to 25 percent of your net self-employment income up to $55,000 for 2019.

Spend your Flexible Spending Account (FSA): if you possess this type of account and still have money left, get caught up on your doctor’s visits! You may only be able to carry over $500 worth of unused money left in your 2019 FSA account at the end of the year. The plan may also limit the amount of time you’re able to use your funds to two and a half months after the end of the plan year.

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