Stretch Your Dollar: How to lower tax burdens in the new year

Stretch Your Dollar

(WTNH) — It’s crunch time for shopping, shipping, and wrapping. But financial experts remind people not to forget your year-end tax moves.

Roger Cowan with the Cowan Tax Group says to take note of charitable giving opportunities.

“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,” said Cowan.

Don’t forget to use those flexible spending account benefits. And if you take required minimum distributions, or RMD’s, don’t forget to take them this year.

“Last year they were waived due to COVID. This year they’re back. Failure to take tour RMD will result in a 50% tax penalty,” said Cowan.

And of course, maximize your retirement plan contributions. If your company offers, at least take the match. It’s free money to put yourself on the road to savings in the New Year.

Remember, we’re getting close to the end of the year. But the further ahead you plan for taxes, the more likely you’ll be able to lower your tax burden.

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