During the Christmas season, you are going to be spending money early and often on gifts for family and friends. It can be easy to lose track of how much you are spending, especially without a set budget. During the hectic holidays, many people overlook the tax implications of the holiday season. In today’s blog post, LongSchaefer offers a few tax planning tips for the holiday season.
Don’t Lose Track of Your Receipts
It’s important to keep track of your receipts all year round, but it’s especially true during the holidays. When tax season hits, you’ll want to have all of your receipts for deductible expenses, and that includes holiday receipts. Make sure to keep all of your holiday-related receipts, including gifts, childcare expenditures, and travel expenses. Whether you are filing your taxes or returning a gift, saving your receipts will pay off.
Don’t Forget Child and Dependent Care Tax Credits
One of the most common headaches during the holiday season is childcare over winter vacation from school. While the adults of the home are still working, children are out of school, many needing some sort of childcare. If you have to hire a babysitter or send your kids to winter camp, you might be eligible for child and dependent care tax credits. In fact, you could be eligible for up to $2,100 in tax credits for your childcare.
Consider When to Payout Your Holiday Bonus
If you are expecting a holiday bonus from your employer in the coming weeks, you might want to consider waiting until 2020 to cash it out. For a bonus that comes with a significant payout, it could actually bump you into the next tax bracket. When working through your tax planning for 2020, it might benefit you to defer your bonus to 2020 so that it doesn’t impact your 2019 tax return. If you don’t immediately need the extra income, it might serve your family best to wait.
Contact LongSchaefer for Tax Planning
As we head into 2020, tax season will be upon us in no time. If you are looking for tax planning help in 2020, give LongSchaefer a call at (513) 245-0300 or contact us online today.