Tax Season 2015 is around the corner. Increase your 2014 tax refund with these tax tips…
The end of year marks an eventful time for many. Not only does Starbucks release their Holiday menu but most of us can already taste Thanksgiving dinner. Then, there’s the surge of Black Friday holiday shopping and before you know it, you’ll be decorating holiday cookies!
With so many cookies to bake and gifts to wrap, don’t forget to take the time to plan ahead for the upcoming 2015 tax season. After all, once the holiday season comes to an end, the 2015 Tax Season will begin shortly after.
Although the IRS has yet to announce the first day to file 2014 taxes, it’s the perfect time to take steps to maximize your tax refund.
Make A Holiday Donation
Can you think of a better way to spread holiday cheer than giving? Rather than just giving to your family and friends this holiday season, spread some holiday spirit to those in need.
When you give, you receive, specifically when it comes to taxes. Donations are tax deductible.
If you’re planning to itemize your deductions, donating to a charity is the quickest way to maximize your refund. If you need your extra cash for holiday shopping, then go through your closet, gather furniture you’ve been meaning to get rid of and donate. Even better, donate that boat you never use. Depending on the market value of your donated items, you may receive an attractive tax deduction!
Whether your donation is in the form of cash or goods, remember to get a receipt.
Contribute to Your Retirement
The end of the year is a great time to start thinking of the future and planning ahead. What better way to plan ahead than to contribute to your retirement savings account?
Whether it’s adding to your 401(k) or Traditional IRA, you can take a dollar for dollar reduction in your income while saving for the future.
In fact, for 2014, you can contribute up to $17,500 to a 401(k) and up to $5,500 for a Traditional IRA. For those over 50, the limit is even higher.
Get Prepared for Tax Season 2015
Donating to a cause, and building your retirement are two ways you can quickly increase the amount you’ll receive in refund money when filing your 2014 taxes. Other ways to increase your refund include taking a look at what expenses you can include on your taxes and deciding if these expenses are worth purchasing before the year ends.
Not only that, but if you usually receive a holiday bonus, ask your boss to postpone the bonus to sometime in January 2015. This may move decrease your tax rate by moving your from one tax bracket to another. Keep in mind, the bonus will become part of your 2015 tax return rather than your 2014 taxes.
Whatever you do, don’t forget to include it on your 2014 tax return! Once the 2015 Tax Season begins, you’ll be able to e-file your 2014 taxes and receive the maximum refund possible with RapidTax!
Photo via American Advisors Group
