COLUMBUS, Ohio (WCMH)–There are a few key steps you can still take now to save you time and money come tax season. The three most important things you can do before year’s end to minimize what you’ll pay in the spring.
“It could be real money on your bottom line…whether it’s getting the rest of the stimulus that you didn’t get, the rest of the child tax credit that you might’ve received,” said Chief Tax Information Officer at Jackson Hewitt Mark Steber.
He emphasized not to wait for spring to take stock of your assets and finances in 2021. The time to act is now.
- Take note of your tax-advantaged retirement accounts like your 401k, HSA, or IRA and consider adding to them
- Make a final charitable donation
- Take advantage of the new personalized portal on the IRS website to save you time come spring
“Well, this year, as a catch on from last year, you don’t have to itemize to take a charitable donation on your tax return and get a break,” said Steber. “You do have to have some documentation, canceled check, or other collaborative evidence that will support that.”
He also suggests you start to organize your documents early. reach out to a tax professional if you fell victim to identity theft, unemployment scheme, or some other type of fraud in 2021.
“Rest assured, you’re not going to have to put it on your tax return, you won’t be taxed on it, but there are some reporting requirements on how you show it and what you do to disclose it.”