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Main Street lists five moves to make now — like landing a job — that will make and save you money later. This got me thinking of things I need to get done before the years is over. Since I’m sure many of you want to start 2013 on the right foot, I’m adding to their list. I share 7 things you can do before the year ends to save money on your taxes next year.
- Organize important documents. There’s nothing worst than wasting time trying to look for important legal docs or receipts. Remember, time is money! Make time to go over your files.
- Give to charity. Start the new year with a clean closet (or garage). Get rid of clothes, cars, boats, and more by donating them! Make sure to ask for a receipt. Not only will you earn a deduction on your taxes, but you’ll also make room for the new toys Santa is bringing you.
- Add to your 401K. This year, workers can contribute up to $17,000 to employer-based plans, or similar employer-based retirement plans. Workers 50 and older can contribute up to $22,500.
- Crunch numbers. Learn how to determine tax deduction value of donated items. It’s easy peasy if you use the resources we share!
- Review your budget. Don’t let lifestyle inflation get the best of you this holiday season. Stay within your means by going over this year’s budget and start planning for next year. What are your money resolutions for 2013?
- Count your losses. If you were affected by Sandy or had any other catastrophe like storm or fire damage happen to your home, you may qualify to get a catastrophe tax deduction. Lucky you! Bone up on the facts as you’ll need to gather many documents beforehand. Groan.
- Schedule dentist and doctor appointments. Spend your money in your Flexible Spending Account (FHA) before the end of the year or lose it. If you have a dependent care account and don’t use the money, it will get added back to your taxable income.
How are you getting ready for 2013?
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Welcome to Bargain Babe! I’m Mara, and I’m so glad you’re here. I am an obsessive bargain hunter and penny pincher, and I am determined to live a full life without EVER paying full price.
#7 is not quite correct. You do not lose unspent funds in a Health Savings Account (HSA). Unused funds roll over from year to year. A HSA is typically used in conjunction with a high deductible medical insurance plan. It is the Flexible Spending Account (FSA) that is “use it or lose it”. These are similar accounts, but have different rules.
@Kathy Oops! Thanks for catching that. Meant to write FSA.
@Kathy ~ Thank you for saving me from writing your comment.
#6 :.. you can get a disaster tax deduction. Lucky you!”
are you kidding? this has to be the worse way to phase this. maybe i am being sensitive about this, but i know too many people who lost to much, some of them lost everything. please think before typing.
@tim My writing was not to diminish the loss of so many people. I’m pretty resilient, but humor (and sarcasm) always help me deal with difficult issues. Many don’t understand and take it the wrong way so I apologize if my writing offended you.
@ tim ~ I agree with you!