Top Tax-Planning Tips for 2019!
Dear <<First Name>>,
With the end of 2019 approaching, it’s time to start strategizing about how you’ll handle your federal tax bill come April. Tax rules can be complicated but taking some time to know and use them for your benefit can change how much you end up paying (or getting back). Here are some key tax planning strategies to put to work before you file your 2019 income taxes.
Understand your tax bracket: When you file your 2019 federal income tax return, knowing your tax bracket and federal income tax rates can help you estimate how much your total 2019 tax obligation will be. This resource can help:
Put deductions and credits to work: Tax deductions and tax credits both reduce your tax bill, but in very different ways. Knowing the difference can create some very effective tax strategies to lessen your tax burden.
Tax deductions are specific expenses you’ve incurred that you can subtract from your taxable income. They reduce how much of your income is subject to taxes. Examples include;
- Medical and dental expenses
- Home mortgage points
- Work-related education expenses
- State and local income, sales and property taxes
- Personal casualty losses
- Business use of your home
- Home equity lines of credit and loans
- Charitable contributions
Tax credits give you a...