Year End Efforts Can Lower What You Owe In Taxes

There are year end efforts you can take to decrease your tax deductions.

Celina-based CPA Carol Abney said you can count up to 60 percent of your adjusted gross income in cash donations. Abney said keep donation receipts to count off what you have to pay in taxes.

“People make donations anyway whether they get to deduct them on their taxes or not usually,” Abney said. “So that just means you get to deduct what you’re donating to your church. I have clients that donate like $20 or $40 every week, and all they have to do is get a receipt.”

Abney said you then just add the receipts to your tax return to reduce what you owe. Abney said any donation to a 501-C counts. Abeny said if your donation was not cash such as a stock, you can report up to 30 percent of your yearly gross income.

As for small businesses, Abney said equipment purchases could be eligible for an immediate reduction. Abney said this allows businesses to lower their current year tax liability rather than capitalizing an asset and depreciating it over time in future tax years.

Abney she also recommends paying your property taxes early. Abney said if you pay by the end of the year, you may receive a discount.