Most people are preoccupied with Christmas and New Year's celebrations this time of year, but if you want to save money on your taxes come April, you need to act in December. CNBC recently shared several tips on ways to reduce your tax burden before 2019 wraps up---things like making charitable donations, increasing your retirement contributions, or offsetting any investment losses.
Many taxpayers are still adjusting to the new tax code thanks to the 2017 Tax Cuts and Jobs Act, which took effect last filing season and brought a slew of changes. But despite all of those changes, there are still some tried and true ways for saving on taxes...and there's still time left in 2019 to do them.
The top recommendation from Tax and IRS Expert Matthew Jennings, spokesman for Wealth Preservation Trust, is not the most obvious one. "I think one of the best things a person can do, and one of the things that I always suggest people do, is start a business," he says. "Starting a business can be a great tax deduction because you can write off business expenses, especially if you start a sole proprietorship or a single-member LLC, those expenses can be deductible on your personal return."
It may not seem entirely feasible to start your own business with just two weeks left in the year, but Jennings says it's easier than you think. "You can still fit it in (before the end of the year)," he tells KTRH. "I think it's more feasible than having a baby---which is another way to get a tax reduction."
If you don't want to start a family or a business between now and New Year's Eve, there are simpler ways to trim your tax burden while trimming the tree. "If you're getting a holiday bonus, try to delay it until January 1st, so it can be on next year's tax return," says Jennings.
Or you might be better off waiting and planning for next year. "The tax code rewards those who plan ahead," says Jennings. "It's always difficult to try to get a good tax deduction when you're last minute."