You might not believe it, but 2018 is rapidly coming to an end. Sandwiched in the hustle and bustle of the holidays and the end of the year, you might want to consider what you’re going to do about your taxes. With the Tax Cuts and Jobs Act taking effect this year, the tax code has become even less familiar to non-tax experts. Essentially, the standard deduction has roughly doubled to $12,000 for singles and $24,000 for married joint filers.
To get back to the matter at hand, here are three tax-saving tips you should employ while there’s still some time left on the 2018 calendar:
Pay attention to your paycheck
The Government Accountability Office recently released a report that stated that 21% of taxpayers aren’t withholding enough money from their paychecks every pay period.
It made logical sense in the past for workers to withhold less from each of their paychecks, but now with the new tax law, there’s a possibility that individuals haven’t had enough taken out each of their paychecks.
If you’re just a little shy of the new standard deduction, you should think about giving a little bit more in charitable donations. Giving more money to charities could help to push you over certain financial hurdles that could result in you saving more money on your taxes altogether.
Side hustle and losses
The modern economy is filled with “Side Hustles” or side jobs. One problem though… most people don’t consider their side hustle a business when in reality, they certainly can be.
Make sure that if you have a side hustle (for example, you make crafts and sell them online), that you set up a business for yourself. That way you can claim losses and expenses.
Whether you owe money to the IRS or you have a State tax debt, our staff of Enrolled Agents and Tax Professionals can help. We have experience negotiating with the IRS in all 50 States.
Call The Tax Defense Group today!