Stretch Your Dollar: Taking advantage of year-end tax breaks

Stretch Your Dollar

It’s the last day of the year and that means time is almost up to take advantage of year-end tax breaks. We are stretching your dollar with what financial moves will help you in the new year.

The year is drawing to a close and so is your chance to take advantage of some tax breaks. If you’re feeling ambitious, here’s what you can do before the clock strikes midnight to lessen your tax bill in April.

You can put aside money in your 401k plan at work and you have even more time, until April 15th, to contribute to your individual retirement account for 2019.

You can also reduce your taxable income by contributing to your Health Savings Account, or HSA.

If you have health expenses make sure you use the money in your healthcare flexible spending account. Whatever money you don’t use by the end of the year, you’ll lose.

There is still time to take advantage of environmentally-friendly tax breaks. You can get a 30% credit for buying and installing solar panels through the end of the year.

That credit will fall to 26% next year and down to 22% the year after.

After 2021, homeowners lose the tax break altogether.

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