The end of the year is quickly approaching, which means it's time to start thinking about your taxes. While nobody enjoys tax season, being prepared and planning can save you a lot of money and stress.

Fortunately, a quick search for a “tax accountant near me” can get you on the right track! Here are some year-end tax planning tips from one of the best Detroit tax experts to help you get started, whether you need help as a business, an individual, or a family:

1. Maximize Retirement Contributions

One of the best ways to reduce your taxable income is to contribute to a retirement account. If you have a 401(k) or 403(b) through your employer, try to maximize your contributions before the end of the year. You can also contribute to an IRA, but the deadline is typically April 15th of the following year.

2. Take Advantage of Tax Credits

Several tax credits can help you reduce your tax liability. For example, the Child Tax Credit can be worth up to $2,000 per child. There are also tax credits for education expenses, child and dependent care expenses, and energy-efficient home improvements. Reach out to our team if you’d like a deeper dive.

3. Bunch Your Deductions

If you itemize your deductions, you may be able to bunch them together in one year to maximize your tax savings. For example, you could prepay your property taxes or medical expenses before the end of the year.

4. Consider Charitable Donations

Charitable donations are another way to reduce your taxable income. If you itemize these donations, you can deduct cash donations up to 60% of your adjusted gross income. You can also deduct the fair market value of non-cash donations, such as clothing or furniture.

5. Sell Losing Investments

If you have any investments that have lost value, you may want to sell them before the end of the year. This can help you offset any capital gains you may have realized from other investments.

6. Defer Income

If you expect to be in a higher tax bracket next year, you may want to defer some of your income until the following year. For example, you could delay a bonus or ask your employer to defer part of your salary.

7. Review Your Withholding

It's a good idea to review your withholding throughout the year, but it's especially important to do so at the end of the year. If you're withholding too much, you'll get a refund, but you'll also miss out on the opportunity to earn interest on that money. If you're not withholding enough, you could end up owing taxes.

8. Hire a Tax Accountant

Tax laws are complex and constantly changing. Hiring a qualified tax accountant can help you ensure that you're taking advantage of all the deductions and credits available to you. Search “tax accountant near me” to find someone in your area to help you with tax planning and preparation.

Don't wait until the last minute to start thinking about your taxes. By following these tips, you can help minimize your tax liability and maximize your return.

Need help with your year-end tax planning? Contact OPTIX Accounting today. We are a team of experienced tax professionals who can help you with all your tax needs.

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