Three Money Moves Which Will Help during Tax Season

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.IncomeTaxImage

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

Be Sociable, Share!

johnAbout john
Seattle CPA+John Huddleston has written extensively on tax related subjects of interest to small business owners. He is a graduate of Washington State University and the University of Washington School of Law.

Huddleston Tax CPAs of Seattle & Bellevue
Certified Public Accountants Focused on Small Business

(800) 376-1785
40 Lake Bellevue Suite 100, Bellevue, WA 98005

Huddleston Tax CPAs & accountants provide tax preparation, tax planning, business coaching, Quickbooks consulting, bookkeeping, payroll and business valuation services for small business. We serve Seattle, Bellevue, Redmond, Tacoma, Everett, Kent, Kirkland, Bothell, Lynnwood, Mill Creek, Shoreline, Kenmore, Lake Forest Park, Mountlake Terrace, Renton, Tukwila, Federal Way, Burien, Seatac, Mercer Island, West Seattle, Auburn, Snohomish and Mukilteo. We have a few meeting locations. Call to meet John Huddleston, J.D., LL.M., CPA, Tawni Berg, CPA, Jennifer Zhou, CPA, Jessica Chisholm, CPA or Chuck McClure, CPA. Member WSCPA.