It’s Almost Tax Season! Get in the Savings Mindset.

Don’t forget about these strategies to help you save the most on your tax returns!

  • Donations: Given the high standard deduction, consider grouping your cash donations (e.g. every other year)
  • Clean out your closet, attic, and garage by donating everything!
  • Did you know gambling losses are deductible? (Only if you also have winnings)
  • Business owners: maximize the use of the Qualified Business Income deduction
  • IRA deduction or ROTH IRA deduction? You should speak to your investment advisor regarding the cost/benefits of each.
  • Educator deduction, if you are a qualified teacher

 

If you are filling out a Massachusetts state tax return, these deductions and credits can really work to your advantage:

  • Rent paid
  • Adoption fees
  • Tuition deduction
  • Undergraduate loan interest
  • Commuter expenses paid
    • EZ-Pass
    • Commuter Rail
    • MBTA Pass
  • Gambling losses can be used up to Allowed Gambling winnings
  • Solar & Wind Credit
  • Septic Credit – if you had to replace your failed septic system
  • Low income retirees should not forget the Circuit Breaker Credit

 

Want to save even more? Come in to Terranova & Associates, LLC for a consultation. Our experienced CPAs will educate you on how to save the most and help you make decisions that are best for your financial future.

Posted by Terranova & Associates LLC

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