2020 is almost over, which means it’s time to start wrapping up those taxes for the year! There are lots of things to do to prepare for 2021. Here are some year-end tax tips to consider:
- If you think you will be in the same or a lower tax bracket next year, it may be beneficial to defer income until 2021. This could include self-employment income or year-end bonuses.
- You may be able to take some last-minute tax deductions, such as controlling when you contribute to charity.
The end of the year is the perfect time to talk with your tax professional on how to position yourself for 2021.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from Turbo Tax[8]
[8] Turbotax.intuit.com, December 11, 2020
