SPRINGFIELD, Mass. (WWLP) – The end of the year is here, which means that tax season is right around the corner.
Taxes have become more complicated during the pandemic with newly added exemptions and deductions so it’s more important than ever to get ahead of the game. There are a few things you can do to get ready as we enter a new year:
- Get started early. This means creating a checklist of any documents related to income you receive from work or investments.
- Do an estimate of what your tax refund will look like or what you may owe.
- If you’re investing, consider selling your losing stocks.
- Fill up your tax-advantaged retirement accounts.
- If you’re investing in a 401k or Health Savings Account, do your best to fill up those accounts to their limits before the end of the year to either defer taxes or secure a tax write off.
- Consider donating to a charity for tax benefits, you can deduct that donation against your adjusted gross income.
While organizing and preparing your taxes is probably low on the fun scale, it’s a key component to your financial wellbeing and future.