(WISH) – You still have time to lower your 2016 taxes.
Even though it’s the final days of 2016, there are still tax strategies that can help reduce the amount you fork over to Uncle Sam.
Once of the most popular ways to reduce your tax bill is by charitable giving, but before making a donation it’s a good idea to look up the charity you are considering at the websites of the Charity Watchdogs.
Consumer Reports says the three big ones are Charity Watch, Charity Navigator, and BBB Wise Giving Alliance. These groups evaluate thousands of nonprofit organizations based on how they collect and spend their money, how transparent they are to the public, and how well they are governed.
If you are a small business owner or freelancers, you can wait to send invoices to clients until 2017. That will reduce your 2016 taxable income.
The strategy could be especially beneficial this year as incoming President Donald Trump ran on a promise to lower and simplify the tax code.
Dec. 31 is your last chance to contribute to a 529 account for your kids’ or grandkids’ education. Any money put into these accounts is treated as a completed gift and is excluded from the account owner’s taxes.
As long as the action occurs by Dec. 31, it will count for your 2016 taxes.
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