ATLANTA – The end of the year can be so expensive. Holidays. To travel. Dinners. Year-end costs add up, so let’s save some money in the dying days of 2021.
Here are some ways to save for the future and save on the 2021 tax bill. Let’s talk about tuition fees. If you have the 529 Georgia Children’s Savings Accounts, put more money in those accounts if you can. Joint filers can deduct up to $ 8,000 per account, $ 4,000 for other filers.
The year, with its uncertainty, could mean that you haven’t given to charity like you have in the past. If you’re still planning to donate, Kentucky could definitely need your help. Nearly 100 people died. Homes, businesses and towns have been decimated.
In addition to giving away and filling the school pot, give your own 401k a little extra. Many still have a paycheck left this year. If you can, put some of it in your 401k. You can set aside up to $ 19,500. If you are over 50, it can go up to $ 26,000. Yes, it’s for retirement, but it saves money on that fast-approaching tax bill.
Here’s another thing to consider that can be costly if you don’t do it right. If you are over 72, you may need to withdraw money from your IRA. We have registered with the fund manager Bud Boland of Brightworth So.
“Over the past year, like last year, the minimum required distributions were not required, but these are back on the table this year,” Boland said. “So people over 72 should make sure that they are withdrawing the required amount from their retirement accounts, so that they are not penalized by the IRS for not doing so.”
So just a few do’s and don’ts that serve multiple purposes – write off retirement, lower your tax bill.
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