As the 2017 tax season (2016 income tax returns) season draws to a close the IRS reminds us of year-end tax planning tips we should consider including charitable contributions and IRA contributions, but others we should consider include selling loss capital positions to offset capital gains in 2017, paying deductible expenses early before December 31, 2017, such as Real Estate taxes in 2017 to deduct them in 2017, and other year-end tips.
Now that the tax return extension filing deadline has passed, the IRS suggests that taxpayers look ahead and get ready for next year.
Taxpayers still have time to take these three actions that may affect the 2017 tax return they will file in 2018.
- Charitable contributions. Taxpayers can deduct contributions that they make to charitable organizations only in the year the donation is made. There is still time for taxpayers to contribute to a charity before the end of 2017. After several storms this year, many taxpayers are making donations to disaster relief organizations. Taxpayers can use the IRS Exempt Organization Select Check tool on IRS.gov to make sure that these charities and any other tax-exempt organization is eligible to receive tax-deductible contributions.
- IRA distributions. Taxpayers over age 70 ½ should receive payments from their individual retirement accounts and workplace retirement plans by the end of 2017. A special rule allows those who reached 70 ½ in 2017 to wait until April 1, 2018 to receive their distributions.
- IRA Contributions. Taxpayers generally must make workplace retirement account contributions by the end of the year. However, they can make 2017 IRA contributions until April 17, 2018.
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