Ways To Reduce Tax Filing in 2013

The New Year is approaching and will be upon us before we even know it. Finances are very important to secure and we have to make sure that we are all set going into the new year of finances. The New Year can also be a good time to start again and rebuild your finances for a better year to come.

Here are tips and action items to consider before the New Year comes, compiled from Charles Schwab.

1. Convert to Roth IRA – This is better than a Traditional IRA because it given you more control over income taxes. This mostly gives you benefits when you are making withdrawals from a retirement account. For more information between a traditional and Roth IRA, click here.

2. Review any tax reporting changes – It is very possible that changes could have been made on tax reporting. Check out any new legislation so you can know before making any strong financial trades in 2013.

3. Explore a 529 account – A 529 account is for children going to college. It is a separate account for savings for children. It also provides many tax benefits that should be taken a look at.

4. Convert Losses into Savings – If you had any losses this year related to work or your business, remember you can turn them into gains by claiming them in your taxes. Check and see if you get a potential tax break.

5. Do a Check on your financial portfolio – Now is a good time to go back and check up again on you finances. See if anything needs to be rebalanced or a new approach should be taken.

6. Also, remember any donations should be made before 2012 is over so you are still able to write it off on this year’s taxes. Remember the magical date is December 31^st.

With all those tips, you will be in better shape for the coming year. This is just a checklist. Look into all the action items and see if anything can be done for you to have better control of your finances for 2013. Take a look and see if you can take control of you finances for the new year to come and a stable future for you and your family.

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