Too Late To Trim Some Taxes?

It’s New Year’s Eve and the clock has just a few hours to tick away until the beginning of 2019!

Benevolent taxpayers might still be able to reduce their 2018 income taxes with a very last-minute donation to a favorite charity. In fact, some non-profits have been reminding their benefactors about an opportunity to contribute.

Making a donation online today or mailing a check in a letter postmarked on Dec. 31 are two ways that often can beat the year-end deadline. However, from a tax standpoint, donors also will want to remember that their gifts still are itemized deductions. Last year’s federal tax reform greatly increased the standard deduction, and the boost may be a better tax deal than itemizing donations and other expenses.

Some other tax-saving moves actually linger until April.They involve contributions by workers to their retirement plans. The rules vary by the type of retirement account.

Retirees who are taking money out of those accounts also should remember that Dec. 31 is the annual deadline for collecting Required Minimum Distributions from most IRAs.

Sweeping changes from recent tax reforms took effect in 2018, and you’ll be encountering them during the coming tax reporting season.  We at EricJohn Ltd. will be ready to assist.

For now, HAPPY NEW YEAR as you celebrate the arrival of 2019!  

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