Practical tax tips from Makki Tax Services.

Before December 31: Year-End Moves That Lower Your Tax Bill

Once the year ends, most tax breaks end with it. Moves that can still help if you make them before December 31:

• Contribute to a 401(k) or similar plan at work — those contributions must be made by year-end (you generally have until the filing deadline for IRAs).
• Business owners: buy equipment you’ve been planning on and place it in service this year — Section 179 may let you deduct the full cost.
• Prepay deductible business expenses, and bunch itemized deductions into one year where it saves more.
• Review investments for losses that can offset gains.

A short planning appointment now beats a surprise in April — book a Tax Planning / Strategy session while there’s still time to act.

What to Bring to Your Tax Appointment

Coming in prepared means a faster appointment and no missed deductions. Bring:

• Photo ID and Social Security cards for you, your spouse, and dependents
• Last year’s tax return
• W-2s, 1099s, and any other income forms
• Records of business, rental, or side income and expenses
• Mortgage interest, property tax, childcare, education, and charitable donation records
• Any letters you received from the IRS or the state

Missing something? Bring what you have — we can tell you what’s still needed.

Estimated Taxes: Who Has to Pay Them

If tax isn’t withheld from your income, the IRS generally expects you to pay as you go — in four installments (typically April 15, June 15, September 15, and January 15). This usually applies if you’re self-employed, own a business or rental property, or have significant investment income. Skip them, and you can owe an underpayment penalty even if you pay in full at filing time. Not sure whether you should be paying estimates — or how much? That’s exactly what a Tax Planning / Strategy appointment is for.

These tips are general information, not advice for a specific situation.