PHOENIX — The New Year is just around the corner, but there is still ways to save on your income taxes if you act fast.
Here are five ways to maximize your deductions for 2019:
1. Grow your savings:
- You have until April 15, 2020 to contribute to your individual retirement account (IRA) and have them count for 2019.
- If you're contributing to a 401(k), you have until December 31.
- The same goes for Health Savings Accounts (HSAs).
- All of these contributions lower your taxable income.
2. Go green with a new car:
- The Federal Electric Vehicle Tax Credit offers up to $7,500 per new auto purchase.
- You can also count on finding holiday deals on pricing.
3. Pay next year's tuition - NOW:
- If you pay your costs by January 1st, you could qualify for a $2,000 Lifetime Learning Tax Credit in 2019.
- Also, if your paying off student loans, you can claim a deduction for the interest you pay up to $2,500.
4. Add up your medical expenses:
- In Arizona, medical expenses are 100% deductible.
- For federal taxes - you can claim anything above 10% of your gross income. For example, if you make $50,000 a year and spend $7,000 on medical expenses - you can claim $2,000.
5. Give back and donate:
- For Arizona taxes you can get up to $800 (married filing jointly) or up to $400 (single) if you give to a large list of approved charities - FOUND HERE.
- Remember- keep records of all donations.
- For federal taxes, you can only write off a gift above $250 if you have a receipt from the organization.
OF NOTE- Standard deductions have almost doubled since 2018, so it may not pay off to itemize your deductions.