blog banner

Five End of the Year Tax Tips

December 6, 2017

Guest Article by Amanda Romine, Accountant at CDPA, P.C.

The end of the year is fast approaching. This is an important time to look at your finances and to focus on your upcoming taxes. Jeremiah asked me to share a few useful end-of-the-year tax tips. Here are a few things to consider:

  • Accelerate Deductions: If you take advantage of itemized deductions, you may want to accelerate next year’s deductions into the current year for which the tax rates are known. For example, you might make January’s mortgage payment in December in order to have an additional month of interest to deduct, or you might move forward with an elective medical procedure or give additional funds to charity.
  • Donations: When making charitable contributions keep the rules in mind. All deductions must have a receipt. Donations in excess of $250 must also have (1) an acknowledgement letter from the charity detailing the amount of the donation, (2) date of the donation, and (3) that no goods or services were received in return for the contribution.
  •  Tax-Free Transfers: If you are over 70 and 1/2 with an IRA, consider a direct transfer to a charity. These qualified charitable distributions are tax-free transfers that still meet the required minimum distribution. As a result, taxable income is lower.
  •  Worthless Stocks: You may have stock that was purchased years ago in companies that have since gone bankrupt. Go through your records and memory to determine if you have any “worthless” stock, so those losses can be deducted now.
  • ACA: For 2017 all family members must still have qualified health insurance or pay the shared responsibility payment. Many Americans have joined a Healthcare Sharing Ministry which exempts them from paying the penalty; however, there is no tax deduction for the costs associated with a Healthcare Sharing Ministry.
A Message to Our Clients About Coronavirus COVID-19:

A Message to Our Clients About Coronavirus COVID-19

At Hodges Trial Lawyers, P.C. we view the safety and well-being of our clients, staff and business partners as our highest priority.

The situation regarding the COVID-19 virus is continually changing, and we are following all recommended guidelines to stay healthy.

Currently, our law firm is remaining open and working to serve your legal needs. We are, however, limiting in person meetings to comply with social distancing recommendations.

We are happy to arrange for phone or video consultations should you have any concerns about keeping your scheduled appointments with us. We are also able to exchange documents via secure drives or email. We will continue to diligently represent our clients, even if we have to do so remotely.

Should you have any concerns, please contact us online or call/text us at 256-539-3110.

Thank you and stay safe.