Rather than your true love sending you a partridge in a pear tree, wouldn’t you appreciate some money-saving tax tips? For my year-ending 12 Tax Days of Christmas series, I’ll dig back into the archives of previous topical columns to reiterate understandable, realistic and legitimate tax strategies that you need to implement now in order to have a much smaller tax bill come April 15.
For this second tax day of Christmas, it’s worth noting that most tax strategies implemented before year-end are meant to save taxes in the current year. Thus, a frantic rush of reviewing financials and speaking with tax professionals bears down on us as we try to enjoy our holiday. However, many taxpayers don’t realize that there are several tax strategies for 2020 that must be implemented at the beginning of the year, or they could miss out on thousands of dollars in savings.
Again, many of these strategies apply to business owners, but we’ll start the list with one any taxpayer could utilize if their situation applies. And remember: If the shoe fits, pull the trigger before January 1.
Health Savings Account (HSA)
This strategy is as strong as ever and a huge opportunity for taxpayers who don’t use all of the health insurance they’re paying for. Thus, if you are generally healthy, you may want to consider a high-deductible health care plan so you have a safety net if something really bad happens, but in the meantime you can save on premiums and build a