Give now, push income out until later: Tips for curbing your tax bill

Paying taxes isn’t necessarily top of mind as the holidays approach, but more than likely, paying for gifts is.

So is there enough time to make smart tax moves that could save you money as 2016 ends, and tax filing season approaches?

“Plenty of time. With three weeks left to go, you have several options in front of you,” explained Mark Steber, chief tax officer for Jackson Hewitt Tax Services. Steber told CNBC’s “On the Money” he expects tax rates to decrease next year with the prospect of broad tax reform.

Incoming President-elect Donald Trump ran on a promise to simplify the tax code. Trump has said he wants to reduce the individual tax brackets from seven to three: 12 percent, 25 percent and 33 percent.

“This year with all the Trump talk of lowering taxes next year and this year probably being a higher tax year, you want to go conventional wisdom,” Steber told CNBC. “Push your income to next year [and] accelerate deductions this year.”

He suggested making charitable donations or contributions during this taxable year, and education costs are another tax consideration.

“If you’ve got children in higher education, you may want to pay winter semester tuition and fees before January 1st,” he said, when the new tax year will begin.

As for other deductions, “the selling of the loss stocks is always a great one,” Steber said. “If you had some stock losers in 2016, “it might be a good year to unload those and pull those losses into this year.”

Read the other half of the article on CNBC here: http://cnb.cx/2gt0hrw

2016-12-12T18:17:11+00:00

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