TAKE ACTION to be sure you are meeting your tax obligations for 2018! Pay yourself or pay Uncle Sam–YOU decide!!! Ask your tax advisor.
The following are within YOUR CONTROL to change the outcome of your income tax return each year!
1. Contribute to your retirement — PAY YOURSELF not UNCLE SAM
** Save for your retirement and reduce taxable income at the same time. When you have a pay raise or a bonus, put that **
— into your employer’s deferred compensation plan
(ask your Human Resource Clerk)
— into your existing IRA or into a NEW IRA
(ask your broker or bank)
2. Adjust your tax liability
— Increase withholdings for a projected larger refund OR smaller balance due – highly recommended if there are NO other options
— Decrease withholdings for more take home pay when your refund is sizeable
** Before making any decrease, consult with your tax advisor to be sure you do not create a balance due situation you are NOT able to pay **
3. Donate to Charitable Organizations
— Help a cause you are passionate about while helping yourself with tax deductions
— Cash, check or credit/debit card
— Noncash items in good condition such as clothing, household goods, appliances, vehicles, etc.
4. Install a qualifying RESIDENTIAL ENERGY EFFICIENT PROPERTY on your home
— Check with your local solar installation company
— CLAIM a 30% credit on your FEDERAL income tax return through 2021
— Claim a 35% credit on your HAWAII income tax return, up to a $5,000 maximum, on qualified systems
— For other states, check with your state and/or local tax authorities
5. ORGANIZE your tax documents and ask your tax advisor to assist you with a PAYCHECK CHECKUP to help you understand your 2018 tax situation and how the new laws will affect you and plan accordingly.