Before the year ended, did you do anything to reduce your taxes?

[AviatorTom]

Financial analysts often recommend that people do some things just before the year ends to reduce their tax burden.

For example...

Contribute the maximum to your retirement plan (IRA, 401K or similar)

Make charitable contributions

Send gifts of money to your children

These are some of the easy things. There are some more complicated things that usually require professional help to do.

Did you do anything to reduce your tax burden before the year ended?

[bolverk]

Not really as the tax year ends in March in the UK, don't know why but that's how it been since I've been working, and over here Tax on your earnings is on a Pay As You Earn system, where you only start paying tax after you hit a certain threshold, For example if you're single your Personal Allowance Up to £12,570 0% tax above that is the Basic rate £12,571 to £50,270 20% tax that is split over 12 months and is taken off your pay by your employer, every year you receive a P60 which shows your tax code for the year which in the example above would be 1275L if you have only one job.

[MiddleAgedClimbee]

401k contributions for both of us, equipment purchase for her small embroidery business, college fund additions (I think this reduces our tax burden?)

[MiddleAgedClimbee]

Thank you for the MHO selection Tom!

[OlderAndWiser]

I am saving money for a wedding in April and can't afford to decrease my savings for any reason at the moment.

[MiddleAgedClimbee]

This seems like a very valid reason! Pretty sure we didn't do any saving or investing our first year of marriage at all.

[exitseven]

nope, I used to be able to write off a car and my mortgage interest. I can't write he car off anymore and both my mortgages have been paid off. I made a lot of money this year too.

[sage2021]

@evitseven
There is an wise old sage saying "The more you make, the more they take".

I remember if I got a 25 cent per hour raise it would put me in a new tax bracket that would take more out of my check. I tried to tell the I didn't want their crummy raise because now I make less money.

[sage2021]

Remember when we could write off the interest on our credit cards?

[exitseven]

@sage2021 that was a long time ago. It ended during the Reagan administration.

[sage2021]

@exitseven
During the Reagan years we also went into a recession. Money was tight, then the IRS stopped letting us write things off on top of it.
I remember the whole country 🇺🇸 was pissed at Nancy Reagan because here the American people were struggling financially and she decided to redecorate the White House. She bought all new china that costs the tax payers a small fortune. She didn't care either.
Nancy Reagan was the drug Czar. Remember her theme was "Just say no"?
Well, she should have said no to her spending the tax payers money to decorate her beautiful White House. Right!

[exitseven]

@sage2021 yes, although I do not remember a recession when reagan was president.

[AviatorTom]

The recession happened a few years before Reagan, during Jimmy Carter's Presidency. OPEC oil crisis, Iran Hostage Crisis, long lines at gas stations, and 18% mortgages.

[sage2021]

@exitseven
I liked it up and yes, there was a recession during the Reagan years.
You can look it up and see for yourself. 😎

[sage2021]

**Correction**
I looked it up

[sage2021]

@AviatorTom
I looked it up and yes, there was a recession during the Reagan presidency. It was during the beginning of his term.

[exitseven]

I remember my father waiting in line to buy gas.

[BoopBoopBeep]

As much as I can. The government spends too frivolously. I'd gofundme money for them on important shite, but as long as they wanna spend $30m to see if goldfish get drunk in space I'ma give away as much as i can first.

[RedInnocent68]

Not really, I already maxed out my retirement accounts through payroll deductions. I guess I made some charitable contributions, but nothing in particular because it was year-end.

[FunkyMonkee]

I can't afford any of that. I'll do something before the end of this year. I'll vote for Trump!

[ArrowheadSW]

I did some tax loss harvesting at mid-year.

[Fireguy17]

yeppers, I paid all of the property taxes on my properties in full.

[Alex-Snow]

Tom I do not make enough to worry about that stuff yet... maybe after college!

[Anonymous]

Taxes? I don't pay taxes, I'm in the top 3% of net worth people in the USA. Taxes are for all you other scrubs.

[ProbablyClueless]

Charitable giving... paying off debt...

[chrissykerdock]

you must have a lot of money tom

[AviatorTom]

@chrissykerdock Why do you say that? I didn't do anything special with my retirement funds.

[chrissykerdock]

i would never have to think about that... which isn't a good thing by any means.

[Anonymous]

Nah but then I don't make enough to pay taxes

[jimmy2]

No I did mot