Take action before the end of the year to save money and improve your finances for 2019.
Many people wait until the new year—and the annual ritual of New Year’s resolutions—to take stock of their finances. But there are compelling reasons to attend to some financial tasks before December 31. For example, you can still save money on your 2018 taxes, even if you don’t plan to itemize deductions. If you haven’t maxed out your retirement accounts, there’s still time to ask your employer to boost your contributions. And if the new tax law has lowered your tax liability, it may be worthwhile to start converting some money from a traditional IRA to a Roth. Don’t forget timely investing moves, such as selling losing investments to offset capital gains. We have plenty of other suggestions, from health care housekeeping to credit freezing to charitable giving.
Tax Strategies
Check Your Withholding
Employers adjusted workers’ withholding earlier this year to reflect the federal tax overhaul, which reduces tax rates and doubles the standard deduction. But the new law also limits or scraps some popular tax breaks. If you continue to itemize and some of your large deductions have been eliminated, you may not be having enough withheld from your paychecks, which could lead to an unexpected tax bill next April. You are more vulnerable if you live in a high-tax state because the law now caps the deduction for state and local taxes at $10,000.
To find out where you stand, go to www.irs.gov and search for “withholding calculator.” If you discover you’re not having enough withheld, file a new W-4 with your employer. Because there are only a few pay periods left in the year, reducing the number of allowances you claim may not make a big difference in your withholding, says Mark Luscombe, principal analyst for Wolters Kluwer Tax & Accounting. Instead, go to line 6 on the W-4 and fill in the dollar amount you’d like to have withheld.
この記事は Kiplinger's Personal Finance の December 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Kiplinger's Personal Finance の December 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
A SOLID YEAR FOR THE KIPLINGER 25
All but one of our favorite actively managed, no-load mutual funds gained ground as markets recovered.
YOUR VACATION HOME COULD PROVIDE TAX-FREE INCOME
If you plan to rent out your vacation home, it's important to understand how your proceeds will be taxed.
IT'S NOT YOUR IMAGINATION: YOUR CEREAL BOX IS SHRINKING
To avoid raising prices, some manufacturers are reducing the size of common grocery items. Here’s how to fight back.
SHOULD YOU WORRY ABOUT BEING LAID OFF? IT DEPENDS ON YOUR INDUSTRY
Downsizing has hit certain sectors. But cutbacks may be slowing, and some companies are expanding.
How identity thieves are exploiting your trust
Con artists themselves are disguising as well-known brands to steal your money and personal information.
CUT THE COST OF YOUR WIRELESS BILL
AT&T, T-Mobile and Verizon dominate the market, but smaller outfits offer similar network coverage at lower prices.
MAKING HOME ENERGY MORE AFFORDABLE
Households in need can get energy-efficiency upgrades, help with utility bills and more from this nonprofit.
A HEAD START FOR SAVERS
The Saver's Credit is designed to help low- and middleincome taxpayers contribute to a retirement account.
Say I Love You With a Money Date
To nurture a lasting bond with your partner, meet regularly to talk about money.
Plan for Your Own Elder Care
AFTER I wrote a series of columns in 2022 about elder care planning for family members, I received a number of responses like this one: “What about married couples who have no children or whose family members don’t live nearby?” wrote one reader. “Or a single individual with no close relatives? How should these people plan for their own elder care?”