If you want to pay the least amount of money in taxes this tax season, make sure you are making the right money moves. Today, we are discussing some of the money moves to make before the year ends to lower your tax bill.
Convert to a ROTH Account
If you think taxes are going to rise, convert to a ROTH account. When you withdraw from your ROTH account, it will be tax and penalty free as long as you are 59 ½ years of age and the account has been open for at least five years. However, before deciding if this would be a good move for you, make sure you are aware that you will have to pay taxes on your pretax contributions and earnings for the traditional IRA.
Give Big to Charity
Those old items that you have sitting around the house that have not been used in months can shave hundreds off your tax bill as long as you donate to a qualified charity. You can even donate cash to your favorite charity up until the last day of the year to be able to deduct. It’s better if your money goes to a good cause instead of Uncle Sam right?
Give to Family or Friends
Is a family or friend having a hard time financially? You both can win when you help them out. You can give out up to $14,000 before you have to pay gift taxes.
Image credit: StockMonkeys.com