As the end of year approaches, the forward-looking among us may be turning toward tax preparation and
New Year’s resolutions. But even if you’re not a big planner, you still have time to ring in the New Year
with a big refund! Beginning your planning before December 31 st can save you big money on your taxes.
Evolution Tax Center is pleased to announce our nationwide partnership with VTax, full-service tax
preparation, accounting and consulting firm. This partnership allows us to serve you anywhere in the
United States, so if you’re looking to get ahead on 2018, read on or get in touch to take advantage of the
biggest refund possible.
Defer your income
Income is always taxed the year you receive the money, but you can delay paying the tax by deferring a
windfall like a year-end bonus into the next year. Ask your company if it’s a standard practice to give
bonuses in the following year, or, if you’re a freelancer, strategically delay billing.
Of course, you’ll still have to pay taxes in the following year, but if a larger return would help you
achieve a goal this year, why not? This also makes a lot of sense if you expect to be in a lower tax
bracket next year. Remember that you absolutely must have a receipt for your contributions.
Itemize your deductions
Standard deductions are easy to file, but they can result in you missing out on some amazing benefits.
Check your qualified deductions and see if they exceed the value of the IRS’s standard deduction rate. In
2017, that’s $6,350 for singles or $12,700 if you’re filing jointly.
Contribute as much as possible to your retirement fund
Tax-deferred retirement accounts compound over time without accumulating taxes, and the value
increases even more if your company offers a sponsored 401(k) plan that matches your contribution. Try
to contribute as much as possible to your match. At a bare minimum, try to contribute as much as your
employer will match.
Don’t neglect your IRA!
You can contribute IRA contributions for 2017 until April 17 th of 2018, so get that cash in your tax-
deferred IRA as soon as possible. Making deductible contributions reduces your taxable income, and the
money will grow tax-deferred. You can contribute up to $5,500 to an IRA in 2017, or $6,500 if you’re 50
Do some do-gooding around town and donate to your favorite charities near the end of the year to
write off contributions and lower your taxable income. Donating stock or property that you’ve owned
for over a year gives you a double tax benefit, since you can deduct the market value on the date of the
donation, thus avoiding capital gains.
Talk to a pro
Our final tip is to in touch with a professional to get your tax situation in order before your taxes are
due. This will save you time and hassle and give you the biggest possible return!