As 2019 draws to a close, now is the perfect time to start organizing your finances and thinking about Tax Day 2020. You don’t have to wait for the calendar to roll over to start taking steps to ensure your financial security. It’s not merely a matter of W-2’s and investments. Here are some tax tips for the end of the year in Hayward, CA.
Donate to charity
If you have the disposable income this holiday season, you might think about putting it toward your favorite charity. With the weather turning cold, donating old coats and clothes is not only good for your closets, but it may also save a life. If you’re feeling particularly altruistic, you can even donate to charity instead of buying gifts for friends and family. (You might let them know about your plan—they might be interested in participating as well!)
If you take the time to volunteer, remember that you can deduct your time and the mileage you travel between your home and the charity.
Take a class
Have you been giving thought to taking a class that expands your skillset or advances your career? Not only will you learn something valuable, but you could save serious money. If you sign up for classes by the end of the year, you could be eligible for a sizable tax rebate as high as $2,000.
Don’t take your bonus (yet)
One of the most overlooked tax tips for the end of the year in Hayward, CA is the deferment of the annual bonus. If you’re in the position to receive a holiday bonus this year and you can postpone receipt of the funds until next year, give it some thought.
For those Californians hovering on the bottom edge of a tax bracket, that annual bonus may push them over the top into a higher bracket.
Dump your losers
If a few of your investments depreciated over the course of the year, you can sell them at their current value and then use those “realized losses” to offset the tax on your winning investments dollar for dollar. If your portfolio has seen cumulative losses, you can use that financial loss against up to $3,000 of taxable income.
Invest in your future
If you’ve still got wiggle room to contribute to your 401(k) or another retirement account, consider updating so that you donate the maximum amount possible. In 2019, that amount is $19,000 for those below 50 and $25,000 for those above.
Investing in your 401(k) is a smart strategy year-round, as the sooner you put big money into your retirement account, the more time it has to appreciate.
Your California tax pro
Easily the most important tax tip for the end of the year in Hayward, CA is this: put your financial security in the hands of the pros. For 40 years and counting, Menjivar & Company CPAs, Inc. has provided a full array of financial services ranging from tax prep to bookkeeping to comprehensive auditing services.
Residential clients and small businesses alike will find a lot to love in our unparalleled financial acumen and top-notch customer service. Call today to find out how we can help you.
Categorised in: Tax Tips