Tips for your end-of-the-year taxes

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Reporter - Marissa Hollowed
Web Editor - Amanda Roberts

 The end of the year is fast approaching, so how can you squeeze in a few tax-related savings to your Christmas lists?

CPA, Johanna Fox Turner helped us put together six things you should take care of now.

  1. Compile all of your receipts, record your mileage and gather any other information that may help you get a deduction. Fox-Turner says when in doubt, show it to your CPA.
  2. Make a list of your non-cash donations, things like clothing and furniture. If you turn them in to a tax-exempt charity, they'll give you a receipt and you can deduct the donation from your taxes. Just be sure to do it by the end of the year. Fox-Turner says you can put a value to the items by using Goodwill's website.
  3. If you are going to make a cash donation, use  your credit card in December. By making a charitable donation by credit card now, you can deduct it this year and pay it off next year.
  4. For college students or parents paying for college, take advantage of the American Opportunity Tax Credit.
  5. Sell your investments to take advantage of zero percent long term capital gains. If you are in a tax bracket up to 15 percent, you are going to pay zero percent.
  6. Switch to a Roth IRA. You'll only pay taxes on the amount you convert. Fox-Turner says the government shutdown will have an impact on the filing of this year's taxes. The time you can start filing will be delayed by a few weeks.

 

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