The New Year is less than a month away. There are some important tax steps to take before that first bit of confetti falls. Three of the more general examples include:
- Donations. Charitable giving is often deductible. Donations made with a credit card are deductible even if the credit card bill is not paid until after the New Year. As long as the donation is charged before 2018, the IRS states that the transaction is likely deductible.
- Contributions to retirement. Retirement contributions are often deductible as well. Workplace retirement account contributions are generally required prior to the end of the year. However, contributions to IRA accounts can qualify for the deduction even if made after the New Year. Taxpayers can get a 2017 tax deduction for IRA contributions made through April 17, 2018.
- Contact information. Make sure your information is up to date with the IRS. If you moved, make sure the agency has the updated address. Those who have changed names due to marriage or divorce should make sure records kept with the Social Security Administration (SSA) and IRS are correct.
These tips can help to make the most of your tax return. However, it is important to note that a failure to apply these and other tips appropriately can result in red flags with the IRS. This could trigger a tax audit. Anyone that receives notification of an impending audit by the IRS is wise to take the correspondence seriously. An attorney can provide guidance, explaining the purpose for the correspondence and representing your interests during the process.