×

Save your first—or NEXT—$100,000!

Money Under 30 has everything you need to know about money, written by real people who’ve been there.

Get our free weekly newsletter and MoneySchool: Our FREE 7-day course that will help you make immediate progress on the money goals you’re working toward right now.

No, thanks
Advertising Disclosure

Year-End Tax Tips

Do you have a fat tax refund coming to you next year or will you owe Uncle Sam? If you don’t know, find out soon. If you will owe the IRS in April, there ways to reduce your tax burden now.

Year-End Tax Tips

Do you have a fat tax refund coming to you next year or will you owe Uncle Sam? If you don’t know, find out soon. If you will owe the IRS in April, there ways to reduce your tax burden now. While many year-end tax tips benefit homeowners and taxpayers with dependents, there are a few ways young, single taxpayers can reduce their tax burdens too.

Check Your Investments –– If you already have non-retirement investments, December is a good time to give your portfolio a check-up and the best time to unload under-performing stocks. This will help offset any capital gains and up to $3,000 of your wages.

Boost Your IRA –– If you have a traditional Individual Retirement Account, annual contributions of up to $5,500 are tax free. Better still, you have until April 2015 to make contributions that can count on your 2014 return. Just remember that you’ll pay those taxes later if you make an early withdrawal from a traditional IRA. Roth IRAs provide – in most cases – tax free withdrawals, though contributions are not tax-free.

Still Owe? — Start planning now to pay your tax tab come April. With four and a half months to save, you should be able to stash away your tax bill without too much sweat. And, you can throw the cash into a high interest savings account to enjoy the interest you wouldn’t earn had the taxes been withheld from your paycheck.

Tweak for Next Year —– If you’re a wage-earner and expect to owe more than $1,000 to the IRS this year, chances are your withholdings are off. Adjust your withholdings with your payroll manager on or before the new year, including allocating an additional amount to be withheld, if necessary. Hint: If you work more than one job, claim the appropriate number of allowances on your largest paycheck and zero on all others.

Published or updated on November 27, 2006

Want FREE help eliminating debt & saving your first (or next) $100,000?

Money Under 30 has everything you need to know about money, written by real people who've been there. Enter your email to receive our free weekly newsletter and MoneySchool, our free 7-day course that will help you make immediate progress on whatever money challenge you're facing right now.




We'll never spam you and offer one-click unsubscribe, always.

About David Weliver

David Weliver is the founding editor of Money Under 30. He's a cited authority on personal finance and the unique money issues we face during our first two decades as adults. He lives in Maine with his wife and two children.

Comments

We invite readers to respond with questions or comments. Comments may be held for moderation and will be published according to our comment policy. Comments are the opinions of their authors; they do not represent the views or opinions of Money Under 30.

    Speak Your Mind

    *