The financial decisions you make throughout the course of a year will affect the taxes you owe at the end of the year. Buying or selling an asset, whether it’s a home, car, or stock; contributing to a retirement account; and giving to charity are just a few things that can affect the taxes you owe. If you aren’t aware of the tax implications of your financial decisions, you may end up owing a lot more than you expected.
With just over three months left before the end of the year, now is a good time to review your tax situation. If you believe the financial decisions you’ve made so far in 2013 will increase the taxes you owe, you can increase the withholding on your paychecks to lower your tax bill. There are also some investment and charitable giving strategies that can lower your tax liability.
While taxes are a certainty, don’t feel like you don’t have any control over them. The financial decisions you make today and the rest of the year can provide tax relief.
Talk to your tax and/or financial advisor for more information.