(KERO) — As 2022 draws to a close, it’s a good time to take a look at some of the last-minute ways to reduce what you’ll owe Uncle Sam come April.
Boosting your retirement savings could offer some big tax benefits. Contributions to your 401k come out of your paycheck before income taxes are deducted, lowering your tax bill for the year. If you’re over the age of 50, know that you can make a catch-up contribution of $6,500 for the year 2022.
Remember to check the balance in your flexible spending account. Pre-tax money deposited in these accounts can be used for health care expenses not covered by insurance. Also, during the holidays, many people find themselves in the giving spirit. Making those charitable donations can give you an added deduction.
“Check out the organization that you are giving the goods or the money to because they have to be a tax-exempt organization in order to qualify,” says Kemberly Washington, a tax analyst.
One final bit of expert advice: As the year comes to an end, make a list of all the documents you’ll need. That way you’ll be organized when it’s time to file your 2022 taxes.