While most people and business owners are busy going over their 2016 taxes, savvy planners are taking steps now to prepare for 2017 in order to help reduce their taxes going forward. As mentioned in the last article, loss harvesting is a good way to help reduce your 2016 taxes owed, but it can also be considered to be more effective when done at the start of the year rather than the end of the year.
Below are some tax planning tips to help you get a head start to saving money on your 2017 taxes:
There’s no better time than the present to get your financials in order. Begin gathering receipts and consolidating your debt to ensure that you’re hitting your thresholds, which also serves as a great head start on organizing your 2017 financials. Collecting your documentation early can certainly help you breathe a little easier in April and beyond.
It’s good practice to contribute to your retirement accounts year-round. If you’ve found yourself in the fortunate circumstance of having already maxed out your 2016 IRA contributions, consider starting your 2017 IRA contributions as this could help you to max out your 2017 contributions earlier.
Health Flexible Spending Accounts (FSAs) benefit employees being that their payroll deductions for FSAs are taken out pre-tax, meaning it’s deducted prior to taxes being withheld. Employers can also benefit from FSAs because they do not pay wage taxes on employee FSA contributions.
Charitable donations to qualified organizations, whether monetary or items donated, is another effective method to help you save. Tax-deductible contributions help to reduce your taxable income.
Business owners that employ the help of professional accounting firms are usually advised to consider tax planning outlooks like personal compensation determinations, employee benefit disbursements, timing of expenditures, and more. Business owners should be encouraged to discuss tax planning opportunities with their accountants.
At Verdeja, De Armas & Trujillo LLP, our team of Miami accountants is dedicated to providing personalized, financial guidance. We provide accurate and comprehensive financial statements as well as in-depth business analyses specific to your business or personal needs. Contact us today for a consultation!