It’s hard to believe that it’s already December, but 2015 is quickly drawing to a close. Tax day for Americans is still more than four months away, but the financial decisions you make in the last remaining weeks of the year can make a big impact on the size of your 2016 tax bill.
Here’s a list of 10 year-end tax tips from Bankrate.
1. Defer Your Income
Identify where the cutoffs are in the 2016 tax brackets, and, if possible, defer some or all of your 2015 income that will fall in the highest bracket. This tip is especially important for earners drawing upwards of $406,750, who would otherwise be subject to the 39.6 percent top rate.
2. Add To Your 401(K)
Go ahead and put as much 2015 income as you can afford into your 401(k) plan. Income placed in 401(k) plans can grow tax-free until it is withdrawn in retirement and likely taxed at a much lower rate.
3. Review FSA Balances
Similar to the 401(k), money added to a Flex Spending Account (FSA) is not taxed immediately. However, the majority of these accounts require that the balance be used by the end of the year. Make sure to confirm by the end of the year that you have used any FSA balance that would otherwise be lost.
4. Harvest Tax Losses
Year-end selling can be…
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