Financial Tips Archive

Monthly Tip: Test Your Knowledge of Accelerating Tax Deductions
(Updated: 12/11/2015)

What percentage of people will need any type of long-term care during their lifetime?

  1. Consider paying medical expenses in December rather than January if doing so will allow you to qualify for the medical expenses deduction.
  2. Prepay any deductible interest.
  3. Pay real estate, state, and local taxes before year-end.
  4. Make next year's charitable contributions this year.
  5. All of the above.

Answer: E. All of the above. To minimize the taxes you pay in any given year, timing is key. Increasing your deductions reduces the amount of taxes you owe. If you can accelerate deductions before the end of the calendar year, you can move tax savings into the current year

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