Tax Tips for the Fall Season: How to Make the Most of Your Money

Fall is here, and with it, comes a shift in our finances. The kids are back in school, the holidays are around the corner, and it’s time to start thinking about preparing for tax season. This is the perfect season to work with your financial advisor to do some tax planning and ensure the maximum benefit to your bottom line. Let’s explore tax tips for the fall season that will allow you to save money on your taxes and improve your financial health.

1. Take advantage of tax deductions

At the end of the year, it’s important to take advantage of tax deductions that are available to you. This includes making charitable contributions, donating to a political campaign, or even just claiming your state and local taxes paid. You can also consider “bunching” your deductions, where you increase your contributions in one year to itemize, and then take the standard deduction the following year. Make sure to itemize your deductions on your tax return to claim them.

2. Plan your retirement contributions

The fall season is an ideal time to contribute to your traditional or Roth IRA. By contributing money to these retirement plans, you can reduce your taxable income and save for the future. There are also new tax laws that allow people over the age of 50 to contribute more to their IRAs, so take advantage of this opportunity to boost your retirement savings.

3. Be on the lookout for tax credits

Tax credits are another great way to reduce your tax bill. There are plenty of credits available, such as credits for energy-efficient home improvements or for purchasing an electric vehicle. Take some time to research which tax credits you may be eligible for and make sure to claim them on your tax return.

4. Adjust your withholdings

If you’re not getting the maximum refund or are paying too much in taxes, adjust your paycheck withholdings. Speak to your HR department to determine if there are any changes you can make in your W-4 form that can increase your take-home pay. This way, you’ll have more cash on hand, and you won’t have to wait for a tax refund to hit your bank account.

5. Consult with a tax professional

If you’re not sure where to start with your fall tax planning, consult with a tax professional. They can provide expert advice on tax laws and regulations, as well as help you identify deductions and credits you may have missed. Working with a tax professional may seem like an extra cost, but if they can maximize your deductions and credits, it can save you money in the long run.

Conclusion

Fall is a busy time, and it’s easy to get sidetracked by holidays, back-to-school preparations, and life in general. But taking some time to review your finances and plan for the future can make a world of difference in your tax bill. By taking advantage of deductions, credits, and planning your retirement contributions, you can save money and improve your financial health. So, don't wait until tax season to take action. Start planning now and make the most of your money this fall season!