Resource Center

Expert Insights header
  Creating change since 1868. Learn more. You earned it. We'll grow it. Busey Wealth Management.
Expert Insights

10 Year-End Tax Moves That Will Save You on April 17th

Image of two men looking at tablet

Believe it or not, saving money on your taxes doesn’t happen when you prepare them this spring. The decisions you make now—before the tax year is over—are what determine how much you’ll owe on next year’s bill. Here are 10 ways to make sure you pay the least possible amount:

1) Be charitable. Charitable donations are a great way to reduce your total tax bill, and donations in the name of loved ones make great gifts for the people who already have everything.

2) Defer your income.

3) Squeeze in a house payment. Make your January house payment on December 31st and get one more month of interest to deduct from your taxes.

4) Bunch your deductions. A tactic that works at least every other year, bunching deductions allows taxpayers the ability to capitalize on expenses that might ordinarily fall beneath the deduction threshold.

5) Pay education forward. Thanks to the American Opportunity Tax Credit, you can get up to $2,400 in tax credit for tuition, fees, and course materials related to undergraduate expenses. Pay your Spring Semester early, and that money becomes yours that much more quickly.

6) Beef up your 401(k). Most companies allow you to change your 401(k) contributions at any time, and now is a great time to add to your retirement investment tax-free. Increasing your 401(k) contributions will reduce the amount of taxable income the IRS can get its hands on.

7) Contribute to an IRA. Whether you already have one or need to set one up, you might be able to deduct some of your IRA contributions on your return. Even if you can’t deduct it, it’s always a good time to fund your retirement.

8) Deplete your FSA accounts. Like 401(k)s, flexible spending accounts (FSA) are a great way to pay for medical expenses while reducing your taxable income. Unlike a 401(k), however, if you don’t use these funds by the time allotted, they are gone forever. Review the amount of your FSA to make sure you are able to completely deplete it each year.

9) Adjust your payroll withholding. It’s sometimes hard to find the magic “withholding number” when we estimate our tax responsibility. Take too much out and we let Uncle Sam use our money throughout the year when we could use it; take too little, and we fail to budget properly when we end up owing taxes. The goal is to get a refund, but only a small one. This ensures you are the one controlling the bulk of your money throughout the year, not the government.

10) Wait to split. “Married filing jointly” with taxes is usually the most tax-effective way to file. If your divorce is in its final stages at the end of the year, try to make the court date in January. The IRS cares very little about the status of your relationship, except that whatever you were on December 31st—married or divorced—is the only status you can claim for that entire year.

With multiple CPAs, Busey Wealth Management can build tax-aware investment portfolios and determine appropriate tax efficient gifting and distribution strategies. Contact us, visit any Busey location or call 1.800.67 l Busey today.

 

Back to Expert Insights

 

Investing involves risk and you may incur a profit or loss regardless of strategy selected. Be sure to contact a qualified professional regarding your particular situation before making any investment or withdrawal decision. You should discuss any tax or legal matters with the appropriate professional.

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC, and are not insured by any financial institution insurance, the FDIC/NCUA or any other government agency, are not deposits or obligations of the financial institution, are not guaranteed by the financial institution, and are subject to risks, including the possible loss of principal. Raymond James is not affiliated with the financial institution or the investment center. Busey Investment Services is independent of Raymond James Financial Services, Inc.

 

 

Busey Investment Services
100 W. University
Champaign, IL 61820
217.365.4860

 

 

 

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Busey Investment Services and not necessarily those of Raymond James. The information has been obtained from sources conserved to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

  • Rated 5-Star "Superior" by Bauer Financial
  • Busey Bank BBB Business Review
  • Certified Green Business by the Illinois Green Business Association
  • Norton Secured; powered by VeriSign
  • Website powered by Digital Insight
  • Surcharge-free access at any MoneyPass network ATM
  • Equal Housing Lender
  • Member FDIC

 

 

 

 

 

 

 

With five lines of business—personal, mortgage, commercial, cash management and wealth management—working together as One Busey, we can meet all your financial needs with confidence. Customers who partner with us are rewarded with the Busey Advantage—regional capabilities and local priorities. It's a commitment that has stood the test of time.

On the personal side, Busey Bank promises to make your banking hassle free with smart personal checking and savings accounts, convenient online banking and mobile banking solutions and consumer loans. Whether you are ready to buy your first home or simply want to refinance the one you currently own, our practical home mortgages, participation in a wide range of special loan programs and in-house mortgage expertise mean your home loan is tailored to your individual needs.

From opening your first business checking account or loan to creating a strong succession plan, Busey can help you manage your growing business. Our business banking, lending and cash management solutions give you the tools you need to keep your business successful and nimble. Our participation in a wide variety of specialized programs and in-house credit expertise allow us to tailor commercial lending packages to your unique situation and make faster credit decisions. Busey knows that cash flow is the lifeblood of a business—whether you need help with receivables, payables, liquidity, fraud protection or information reporting, we can customize your cash management solution to your growing business' needs.

You've earned it. We'll grow it. Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations. We build a team of local professionals around your needs to establish the best strategy for your situation. We work closely with you to develop a personal, comprehensive plan that will help you meet your goals and objectives through each phase of the wealth management process.

Innovative Banking. Simplified.

It's your money, and you should be able to access your accounts whether you're out shopping or out of the country.

Busey makes it easy to securely manage your finances whenever you want, wherever you are.

Personal Banking Learn More »

First home. Or dream home.

There's no place like it.

Busey promises to find the home financing that's best for you - whether you're just starting out, tired of renting or purchasing your dream home.

Mortgage Learn More »

A top partner for your bottom line.

You've worked hard to realize your dream of opening a business.

Busey promises to partner with you so you don't have to handle difficult decisions alone.

Business Banking Learn More »

You earn it. We'll grow it.

After years of hard work, you want to see your efforts pay off - literally.

Busey promises to make your money work for you.

Wealth Management Learn More »

Our customers are our neighbors.

When it comes to navigating your unique financial journey, you want a partner who understands who you are, where you came from and where you are headed.

Busey promises expert advice to guide you through every important financial decision.

Resource Center Learn More »

Our roots run deep.

With roots that trace back more than 145 years, our professional farm managers are entrusted to care and maximize value for landowners controlling a combined 100,000+ acres of prime farmland in Illinois.

Ag Services Learn More »

A top partner for your bottom line.

You've worked hard to realize your dream of opening a business.

We'll build a relationship with you so you don't have to handle these difficult financial decisions alone.

 Learn More »

Your Dream. Our Promise.

You have big dreams.

Busey promises to help you realize those dreams.

The Busey Promise Learn More »

Fulfilling Dreams for 150 Years.

Join us as we celebrate our sesquicentennial.

busey150 Learn More »