If you will be selling a mutual fund, sell before the year-end distributions to avoid taxes on the upcoming dividend or capital gain. Time your investment sales.
To achieve this, you might prepay medical and miscellaneous expenses on December 31 to get above the minimum amount. This money is "use it or lose it" so make sure you estimate well! 2. The mortgage interest and real estate taxes are deductible, and may allow you to itemize other deductions such as property taxes and charitable donations. Withdrawals taken before this age can result in penalties in addition to income taxes. One of the best tax breaks available today is the home sale exclusion, which allows you to exclude up to $250,000 ($500,000 for joint filers) of profit on the sale of your home from your income. 7. In order to deduct these expenses, you may need to bunch these types of expenses into a single year to get above the minimum.
Every dollar you contribute will reduce your taxable income and thus your income taxes. You can set aside money for medical expenses and day care expenses. Keep your house for at least two years. Wheel Hubs suppliers If you're retired, plan your retirement plan distributions carefully. Also, you should allocate tax efficient investments to your taxable accounts and non-efficient investments to your retirement accounts, to reduce the tax you pay on interest, dividends and capital gains. And don't be afraid to ask for help.5% of your adjusted gross income and miscellaneous expenses such as tax preparation fees must exceed 2% of your AGI). Uncle Sam charges interest and penalties if you don't pay in at least 90% of your current year taxes or 100% of last year's tax liability. 6. 4. Also, pay attention to the 59 and one half age limit. Certain expenses must exceed a minimum before you can deduct them (medical expenses must exceed 7.