Thanksgiving is the start of the holiday season and a time of year when we reflect on what we’re thankful for in our lives, paying tax probably isn’t on that list. Still, the holiday season is also a sign that the year is counting down and a new tax season is getting ready to begin after the New Year. And to be sure, many of us will be thankful to know a refund is on the way.

Here’s a look at three tax moves to be thankful for during the Thanksgiving season courtesy of U.S. News and World Report. They may not be as good as Grandma’s pumpkin pie, but they certainly help in having a prosperous New Year.

Tax

Be thankful through charitable contributions. 

Thanksgiving, and the entire holiday season, is a great time to donate to your favorite cause—either for yourself or as a gift to a family member, friend, or co-worker. As long as you are donating to a verified 501 (C) (3) charity, you’ll be able to deduct that donation in your upcoming taxes. Just remember that you are only allowed to deduct up to 50 percent of your adjusted gross income for most charitable contributions.

 

Be thankful for your (tax)harvest. 

According to U.S. News and World Report, tax harvesting is the idea you might sell off a stock that may have performed poorly, resulting in a net loss that offsets your capital gains tax liability. Even if your investments have had a good year that does not necessarily mean your portfolio has not included some poorer performers. Because short-term capital gains are generally taxed at a higher federal rate, tax harvesting can ultimately help to decrease your overall tax liability.

Be thankful for 401(k) contributions. 

Review not only your own 401(k) tax contributions, but what your company may (or may not) match. If your company matches up to a certain percentage of what an employee puts in, it’s good advice, as that employee, to put in as much as the company will match.

Have financial questions? We’re here to help! The experts at Preziosi • Nicholson & Associates can solve even your most complex financial puzzles. We put all the pieces into place, bringing you clarity, peace of mind and more time to focus on the big picture.