855-371-0070
As the end of the year approaches, it is the perfect time to take a closer look at your finances and ensure you are making the most of every tax benefit available to you. Whether you are an individual taxpayer or a small business owner, maximizing deductions and credits before December 31 can help lower your tax bill and leave you better prepared for the upcoming filing season. Here are some essential strategies to consider as the clock winds down on the tax year.
Maximize Your Deductions
Deductions reduce your taxable income, which in turn lowers the amount of taxes you owe. To get the most out of your deductions, consider these tips:
1. Charitable Contributions
Donating to qualified charities before December 31 can help reduce your taxable income. Contributions can include cash donations, non-cash items like clothing or household goods and even securities. Be sure to keep a receipt or acknowledgment letter from the charity, as the IRS requires documentation for all charitable deductions.
2. State and Local Taxes (SALT)
If you have not reached the $10,000 cap on the state and local tax (SALT) deduction, consider paying property taxes or estimated state income taxes that are due in early 2025 before December 31.
3. Medical and Dental Expenses
If you have had significant out-of-pocket medical expenses this year, you may be able to deduct them if they exceed 7.5% of your adjusted gross income (AGI). Schedule any necessary medical or dental procedures before the end of the year to increase your deductible expenses.
4. Small Business Deductions
Business owners can take advantage of Section 179 to deduct the full purchase price of qualifying equipment or software purchased and put into use before December 31. Additionally, consider stocking up on office supplies or prepaying for professional services to maximize your deductions.
Do Not Overlook Tax Credits
While deductions lower your taxable income, tax credits directly reduce the amount of tax you owe—making them even more valuable. Here are some credits you may be able to claim:
1. The Child Tax Credit
If you have children under the age of 17, you may qualify for the Child Tax Credit. To maximize this benefit, ensure that all your dependent information is accurate and up to date.
2. The Education Tax Credits
If you or a family member is pursuing higher education, you may qualify for the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC). Both can significantly reduce your tax liability.
3. Energy-Efficient Home Improvements
Homeowners who made energy-efficient upgrades, such as installing solar panels or energy-efficient windows, may qualify for the Residential Energy Credit. Be sure to gather receipts and manufacturer certifications to claim this benefit.
4. Small Business Tax Credits
Small businesses can claim various credits, including the Work Opportunity Tax Credit or credits for providing paid family and medical leave. Review your business activities to ensure you are not missing out.
Final Steps Before December 31
- Review Your Income: If you expect to be in a lower tax bracket next year, consider deferring income to 2025. Conversely, if you anticipate higher income next year, accelerating income into 2024 may be beneficial.
- Contribute to Retirement Accounts: Maximize contributions to retirement accounts such as IRAs or 401(k)s, which can provide tax advantages and boost your savings.
- Consult a Tax Professional: A tax advisor can provide personalized strategies to ensure you are taking full advantage of deductions and credits before the deadline.
By acting now, you can make the most of the remaining days in 2024 to optimize your tax situation. With thoughtful planning, you will head into tax season with confidence—and possibly a lower tax bill.
 Corporate Capital, Inc.
If you need help with your tax filings as we head into 2025, our Corporate Capital team is here to assist you. Located in Las Vegas, Nevada, our seasoned team of licensed professionals and legal experts can guide you through a successful tax filing season. We invite you to call 855-371-0070 to speak to a knowledgeable team member so you can have peace of mind!