Tax Tips Before The New Year

All too often when it comes to taxes, we procrastinate.

  But H & R Block tax professional Barry Fox says this year more than ever, people need a firm grasp on new tax breaks before the year runs out.

    “It could very definitely save money, but the biggest thing is it’s avoiding a shock that might happen next year,” said Fox.

    If you itemize deductions you can save money on the following if you have receipts dated before January first:

    - sales tax on new cars

    -  charitable donations

    - medical bills over a certain threshold
 
    -  and job seeking expenses

    Plus there’s credits for energy efficient home improvements, hybrid cars and moving expenses.

    But a warning…

“The IRS and the South Carolina department of revenue are really cracking down on deductions without receipts.“ 

Financial advisors recommend doing a tax checkup before the end of the year so there will be no surprises come tax day.  That way you’ll know if you need to increase those charitable donations, or contributions to your Traditional IRA.