(WTNH) – As you get the champagne and New Year’s resolutions in order, don’t forget to check off that financial list before ringing in the new year. Financial experts discuss year-end tax moves.
Roger Cowan with the Cowan Tax Group says it’s time to get in those charitable donations.
“Even if you don’t itemize, an individual can get up to $300 in tax deductions, married couples can get up to $600. Even if you don’t itemize, that’s new, take advantage of it,” Cowan said.
Don’t forget to use those flexible spending account benefits and if you take required minimum distributions, or RMDs, don’t forget to take them this year.
“Last year, they were waived due to COVID, this year they’re back. Failure to take your RMD will result in a 50 percent tax penalty,” Cowan said.
Of course, maximize your retirement plan contributions, if your company offers, at least take the match. Free money to put yourself on the road to savings in the new year.