Holiday time is also an important time to take care of some easy end-of-year money moves. Although remote working company employees can NOT deduct home office expenses, entrepreneurs and contract workers can. Tax Planning Expert Chantelle Davis says: "If you are a contract worker - even like an Uber Driver - and you do some of your administrative duties you do at home, be sure to capture that Home Office Deduction - because that can reduce your taxable income." Davis also says giving to your favorite non-profit now is beneficial to you both because the IRS is allowing those who take the standard deduction to deduct up to $300 in cash given to qualifying charities. Davis says to get your ducks in a row if you took advantage of the advance tax child credit. "A lot of families have been able to receive part of their Child Tax Credit in advance. Hold on the letter the IRS is going to send out to you in January so that you will be able to file your tax return properly The First Time!"
Davis also says to look at your investments - including ones you sold for a profit and ones that are not doing well and don't let any money go unused if you have a surplus in your Flexible Spending Account, or max out your 401k for the year to lower your income tax bill. Also, if you're retired, make sure you make your required IRA withdrawals; if you're self employed, pay your deferred taxes; finally, if you have reached your deductible amount in your health insurance policy, make an appointment with your doctor before the 31st for an end-of-the-year check up.