Now is the time to do some tax planning before year end. You should defer as much income as you can through the use of a 401(k) if you have access to one. It is good to at least contribute enough to get the company match. This is free money and often results in a minimum of 50 to 100% return on the amount invested in the first year depending on what your company will match. You can always deduct any contributions you have to a traditional IRA up until you file your tax return.
Deductible expenses are::
- Healthcare expenses
- Taxes both property taxes, the BMV allows you to pre-pay a full year in addition to the remainder of this year at the time that you are getting your initial plates, and state income taxes make sure to pay all the taxes you owe during the year in which they are incurred.
- Charitable contributions
- Miscellaneous expenses such as lockboxes or moving expenses.
- Business expenses if you have a closely held business many things that are not deductible otherwise may be deductible under your business. These may include meal and entertainment expenses, auto expenses, and advertising expenses to name a few.
These are but a few of the items you can consider if you have the leftover cash.