For many people, The New Year means a fresh start and the beginning of better financial habits.
Whether you had a great year with your finances or still need help getting off the ground, here are 4 tips that can save you big for the upcoming tax season.
1. Contribute the maximum on your retirement accounts
Company retirement accounts and 401k's are one of the most powerful tools when trying to reach your financial goals.The money that you contribute to your 401k does not count toward your gross income of the year. This means that you will not be taxed on this money; allowing you to save more money over time.
If your employer matches your contribution, consider it to be free money and try to match their amount. Take your savings a step further by maxing out your 401k contributions so that you are putting the maximum amount of money allowed ($19,000 for 2019 and $19,500 in 2020).
2. Review medical bills
If you had really high medical bills due to a major illness, you may qualify for a tax break. Make sure to save all medical bills and receipts to see if this applies to you.
3. Double check you have withheld enough taxes from your paycheck
There is probably no worse surprise than receiving a tax bill around tax season, saying that you owe money. If you have gotten a new job or had changes to your marital status, make sure you are withholding the correct amount from your paychecks to avoid tax penalties.
4. Work with a tax professional
Working with an experienced tax professional can help save you money and time, by making sure that your tax returns are done correctly. Reach out to anyone at Metro Tax Solutions at 347-627-6262 for any questions or help with your finances.