Blog

If You Want to Benefit from These Last-Minute Tax Breaks – You Must Act Now!

by Tracey Hrica, EA Dec 20, 2019 | Share

The year 2019 is coming to an end, but if you act now, there are a few ways to lower your 2019 tax liability.
We are now into the second tax filing season under the Tax Cuts and Jobs Act.  Most of us have discovered we are no longer itemizing.  Since the new law just about doubled the standard deduction($12,200 for singles and $24,400 for married-filing jointly in 2019), itemized deductions are out of reach for many filers.

Other write-offs have been limited as well: Consider there’s now a $10,000 cap on state and local tax deductions.

So what can you do to cut your tax bill? Here are a 3 tax breaks you can still take advantage of.

Savings

  • If you have an IRA, you have until April 20, 2020 to make a contribution and have it count in 2019. However, if you have a 401(k) with you employer, you only have until December 31st to set aside money.  For 2019 you can save up to $19,000, or $25,000 if you are 50 or over.  These contributions come out of your paycheck, and reduce your taxable income for the year.
  • Do you have a high-deductible health plan at work? If so, and you have a health saving account(HSA) you can save some more there.  In 2019, you are allowed to contribute up to $3500 for self-only coverage, or $7000($8000 age 55 or over) if you have a family plan. Contributions are made pretax, or are tax-deductible.  These funds grow untaxed, and withdrawals for qualified medical expenses are tax free.

Go Green

  • There is a $7500 tax credit per purchase of a new electric vehicle. Take caution though.  The amount of the credit begins to phase out for a manufacturer after more than 200,000 cars are sold.
  • If you are considering solar panels, push to get installed before the end of the year. If you do, you can take advantage of a 30% credit. Next year, the value of the credit declines to 26%, and then to 22% in 2021. After that year, homeowners lose the tax break altogether.

Education

  • If you are thinking of taking classes next year, pay for your expense before December 31st and you may be eligible for the Lifetime Learning credit.  The credit can potentially be up to $2000 per return, but is subject to phase outs. The credit phases out for single filers with modified adjusted gross income between $58,000 and $68,000 in 2019 ($116,000 to $136,000 for married couples filing jointly).
  • Remember – If you’re paying off a student loan, you can take a deduction for the interest of up to $2,500. This is an above-the-line deduction, so you don’t have to itemize your return to get it.

Source: Darla Mercado, CNBC

About the Author

Tracey Hrica, EA

Tracey Hrica joined the firm in 1995. She is an Enrolled Agent(EA), which enables her to prepare personal and business tax returns and represent clients before the IRS. Working closely with her clients, Tracey’s primary areas of concentration are new client set up and QuickBooks support. As a QuickBooks ProAdvisor, she works closely with clients who rely on QuickBooks for the day to day running of their business. Tracey has expertise in both QuickBooks Desktop and QuickBooks Online.

See all blogs
Share

Comments

  • Debbie Reply

    Thank you, I have just been searching for info approximately this topic for ages and yours is the greatest I’ve came upon so far.
    But, what in regards to the bottom line? Are you sure concerning the supply?
    adreamoftrains best web hosting 2020
    web hosting

    August 10, 2020 at 5:18 pm
  • Luella Reply

    Great goods from you, man. I have take into accout your stuff prior to and you are
    just extremely magnificent. I actually like what you’ve
    obtained right here, really like what you are saying and
    the way by which you assert it. You’re making it entertaining and
    you continue to care for to stay it sensible. I can’t wait
    to learn much more from you. This is really a wonderful website.

    Feel free to surf to my homepage … web hosting providers

    August 10, 2020 at 11:17 pm
  • Eleanore Reply

    Asking questions are in fact pleasant thing if you are not understanding anything entirely, however this paragraph provides good understanding yet.

    Here is my web-site … web hosting companies

    August 11, 2020 at 9:46 am
  • Jane Reply

    A motivating discussion is worth comment. I believe that
    you need to publish more on this subject, it might not be a taboo subject but typically folks don’t speak about such topics.
    To the next! Best wishes!!

    Also visit my website … web hosting reviews

    August 14, 2020 at 12:19 am
  • Lin Reply

    Outstanding post however , I was wanting to know if you could
    write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further.
    Thank you!

    Look at my site website hosting

    August 14, 2020 at 2:12 am
  • Samira Reply

    WOW just what I was looking for. Came here by searching for cheap flights

    August 24, 2020 at 8:39 am
  • Madelaine Reply

    What’s up Dear, are you in fact visiting this website regularly, if
    so after that you will absolutely get nice knowledge. cheap flights yynxznuh

    August 24, 2020 at 3:10 pm
  • Flor Reply

    Hi there I am so happy I found your webpage, I really found you
    by error, while I was researching on Yahoo for something else, Regardless I am here now and would just like
    to say thank you for a incredible post and a all
    round exciting blog (I also love the theme/design), I don’t have time to browse it all at the moment but I
    have bookmarked it and also added in your RSS feeds, so when I have time I
    will be back to read much more, Please do keep up the fantastic job.
    2CSYEon cheap flights

    August 24, 2020 at 6:40 pm
  • Wilford Reply

    Awesome article. 3gqLYTc cheap flights

    August 25, 2020 at 2:18 am
  • Carmon Reply

    Quality posts is the key to invite the users to visit the web page, that’s what this web site is providing.

    3gqLYTc cheap flights

    August 25, 2020 at 10:25 am
  • Wade Reply

    Thanks for sharing your thoughts. I truly appreciate your efforts and I
    am waiting for your further write ups thanks once again.

    Also visit my webpage – cheap flights

    August 26, 2020 at 2:50 pm
  • Alicia Reply

    Pretty section of content. I just stumbled upon your site and in accession capital to assert that I acquire in fact enjoyed account your
    blog posts. Any way I will be subscribing to your augment and even I achievement you
    access consistently quickly. cheap flights 3aN8IMa

    August 27, 2020 at 12:35 am
  • Mallory Reply

    I’d like to thank you for the efforts you have put in penning this site.
    I really hope to check out the same high-grade content by you later on as well.

    In fact, your creative writing abilities has inspired me to get my own, personal website now 😉

    my webpage: cheap flights

    August 27, 2020 at 7:26 am
  • Fletcher Reply

    I have read so many content on the topic of the blogger lovers but this article is in fact a pleasant piece of writing, keep it up.

    Also visit my web site: cheap flights

    August 27, 2020 at 10:19 am
  • Jennifer Reply

    Hello, I enjoy reading through your article post.
    I wanted to write a little comment to support you.

    My site cheap flights

    August 27, 2020 at 9:33 pm
  • Waylon Reply

    This info is invaluable. How can I find out more?

    Look into my web page; cheap flights

    August 28, 2020 at 3:18 am
  • Jacques Reply

    Hey are using WordPress for your site platform?
    I’m new to the blog world but I’m trying to get started and set
    up my own. Do you require any coding knowledge to make your own blog?
    Any help would be really appreciated!

    Here is my homepage – black mass

    August 31, 2020 at 1:14 am
  • Valerie Reply

    I’d like to find out more? I’d like to find out some
    additional information.

    Take a look at my web page … best web hosting sites

    August 31, 2020 at 2:30 pm
  • Krystal Reply

    I loved as much as you will receive carried
    out right here. The sketch is tasteful, your authored subject matter stylish.
    nonetheless, you command get bought an impatience over
    that you wish be delivering the following. unwell unquestionably come further formerly again as
    exactly the same nearly very often inside case you shield this increase.

    My blog post web hosting sites

    September 5, 2020 at 10:36 am

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Articles

11 Certified Tips to Slash Your 2020 Tax Liability Before it’s too Late

Do you feel the time ticking away? 2021 is quickly...


7 Expert Record Retention Facts: Here Is How To Combat Crammed Tax Files Now

Is your office starting to feel a little crowded? ...


6 Ways to Get Out of Debt

Debt can be overwhelming. But it doesn't have to t...


5 Easy Password Tips You Need to Protect Yourself While Online Shopping

During the holiday season, millions of us will be ...


Your Small Business: From A – Z, Volume 2: D-F

Do you ever wish you had a better understanding of...