Tax Filing Deadlines Are Looming: Essential Moves To Make This Year

Blog January 30, 2020 By Admin

Tax deadlines are coming up fast. What smart moves should you be making to maximize refunds, reduce amounts you’ll have to fork over for taxes and to protect your finances?

Federal income tax deadlines will be here before you know it. Don’t be late if you don’t want to be paying extra penalties and interest. This year we are all facing many new changes, new assessments, tax rates, caps on deductions, and more. On top of this, the IRS and tax authorities seem worse to deal with than ever.

Challenge Your Property Taxes

Start by challenging your property tax bill. Both assessments and tax rates may have gone up significantly. That can mean twice the pain when you get your actual bill. Some Long Islanders could be facing bills that are 50% higher this year.

Refinance Your Home

Interest rates are still incredibly low. This makes it a great time to refinance your home loan and then keep your mortgage interest under the caps, which would otherwise trigger higher income tax bills. If you have paid off your home mortgage, this may also be a good time to take out a small loan while rates are good and banks are lending. Use this to maximize your deductions and stay flush with emergency cash.

Get Pro Help

You can typically write off the cost of tax prep help. So, get the best help you can. It can more than pay for the difference in refund money, avoiding audits and tax liens and being involved in fraud. Investing an extra hundred dollars or so could save you thousands.

Maximize Deductions To Tax Saving Accounts

You can actually still make contributions to tax saving accounts like IRAs, 401ks, ESAs and HSAs and take the benefits for 2019 taxes. Normally you can still use this money to invest and for qualified expenses. It’s a win win for you.

Reduce the stress by talking to tax professionals early and getting any needed paperwork organized. Then create a plan together to stay ahead and minimize taxes for the next 2 years and beyond.