End of the Year Tax Tips Could Keep More Money in Your Pocket
Posted December 26, 1999
RALEIGH — The year is almost over, and there is plenty of time to do a few things that could really keep Uncle Sam from getting more of your money.
While some people are still spending money at the mall, Tanya Seeley is thinking about saving money.
"I've really done everything I could do like paid the property taxes on my house," said Seeley.
CPA Ben Micham says now is the time to do some tax strategizing.
"The general rule is to defer income and accelerate deductions," said Micham.
Deductions that reduce your tax bill are as easy as writing a check to your church.
"That's deductible. It doesn't matter when it's cashed. It's a good deduction. You could take non-cash items to Goodwill for example, and they'll give you a receipt," said Micham.
Your money is like a carton of eggs. Some of it ends up on your plate and some goes to taxes, but putting that money into a 401K is like putting eggs into the refrigerator.
It protects your money from the tax man, so now may be a good time to put more into that 401K.
"Sometimes your employer will let you all-of-a-sudden put more money in, so call the payroll department soon," said Micham.
Micham also says to pay your property taxes before the first of the year and deduct them from your 1999 taxes. Seeley says it pays to pay early.
"I'm getting a pretty sizeable refund, so I'm happy," said Seeley.
You should also pay your January mortgage payment a few days early and deduct the interest on this year's tax bill.