Do these 5 things by Dec. 31 to cut your tax bill

Do these 5 things by Dec. 31 to cut your tax billDo these 5 things by Dec. 31 to cut your tax billIt may seem too early to start thinking about your tax return, but procrastination could cost you thousands of dollars.Here are a few simple maneuvers that could save you a bundle on your taxes - if you make them by Dec. 31.1. Move money into a 401(k)Traditional 401(k)s can shield a decent chunk of your income from taxes. In 2018, you can funnel up to $18,500 ($24,500 if youre 50 or older) of your pay into one and avoid paying taxes on that money until you withdraw the funds. If your employer offers a match on contributions, youll get free money to boot, and those matching dollars are on top of the $18,500 limit.If you dont have access to a 401(k), you may leise be in luck - you may be able to shield up to $5,500 from taxes ($6,500 if youre 50 or older) byputting the money into a traditional IRA. If you qualify, the size of the tax deduction depends on your income and whether you or yo ur spouse are covered by a retirement plan at work. nachschlag You have until April 15, 2019, to move money into an IRA and still make it count as a 2018 contribution. (And yes, its possible to contribute to a 401(k) and a traditional IRA in the same year.)2. Bunch your charitable donationsItemizing on your taxes generally only pays off when your itemized deductions add up to more than the standard deduction (and withthe new tax rules for 2018, the standard deduction is much higher $12,000 for single filers, $18,000 for heads of household and $24,000 for joint filers). Thats why charitable donations and other itemized deductions might not get you much of a tax break if theyre so small that you just end up taking the standard deduction instead. Its no reason to stop giving, but you may want to tinker with the timing.Donating one big amount instead of a series of small amounts could change the tax game, says Kerry Garner, a CPA at Patterson Hardee Ballentine in Franklin, Tennessee. A married couple might not score a tax break from a $15,000 annual donation, for example, but bunching the donations into a $30,000 gesundheitsgefhrdender stoff every other year could, he notes.3. Sell the losersIf you made money on the sale of investments in 2018,you might have some capital gains tax to pay in April. But you might be able to offset some of those gains with losses.If youve got an event that generates a significant capital gain during 2018 - maybe that happened earlier in 2018 or sometime throughout the year - to the extent that youve got investment holdings that are sitting at a loss position, it makes sense to liquidate those losses during the year to offset capital gains, explains Nicholas Shires, a CPA and tax partner at Dannible McKee in Syracuse, New York. If your losses exceed your gains, you may be able to deduct the difference on your tax return, up to $3,000 per year ($1,500 for those married filing separately).4. Make a decision on that divorceIf youre s till negotiating with your soon-to-be ex and expect to pay or receive alimony, keep an eye on the calendar. In general, for divorces finalized after Dec. 31, alimony payers will no longer be able to deduct their payments, and alimony recipients will no longer have to include that money as taxable income. If youre the one thats going to be paying the alimony, you would want it to be finalized prior to December 31, 2018, Shires says.5. Meet your tax preparerThe sooner your tax preparer has an idea of how your year is shaping up, the sooner he or she can find you more ways to save. Thats especially true for people who are self-employed or have unusual sources of income, Garner notes. I try to do it the first week of December, so it still leaves them plenty of time to actually get things done, he says.This article was written by NerdWallet and was originally published by The Associated Press.