10 Moves You Should Make Now to Lower This Year’s Taxes

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If I asked you to list the most common ways people waste money, how would you respond?

You might say, “paying for unused memberships and subscriptions,” or “buying things you don’t really need,” or “letting food go bad.”

These are all common ways of wasting money, and there are plenty more. But one thing that likely wouldn’t appear on your list, but should, is “paying too much in income taxes.”

Every dollar of deductions you qualify for will reduce your federal tax bill by 10 cents to 37 cents, depending on your tax rate. Every tax credit you can claim will lower your bill dollar for dollar.

But here’s the thing with taxes: Come Dec. 31, many of your opportunities to save on your taxes for that year vanish with it. That’s why you should always do a quick review during the last few months of the year to make sure you’re not missing something that could save you hundreds, or even thousands, of dollars.

That’s what this week’s “Money!” podcast is about. We’re going to talk about how to save money next April with a quick review now. And we’re going to do it without making your eyes glaze over.

As usual, my co-host will be financial journalist Miranda Marquit. Listening in and sometimes contributing is producer and novice investor Aaron Freeman.

Sit back, relax and listen to this week’s “Money!” podcast:

• Listen on Apple Podcasts
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• Listen on Spotify

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Show notes

Want more information? Check out these resources:

• The IRS’ free Tax Withholding Estimator (the tool Stacy mentioned)
• How One Hour Today Could Be Worth $1,000 Next Year
• 5 Year-End Moves to Make Now and Save Big at Tax Time
• Barron’s: Tax Moves to Make Before the End of the Year to Lower Your Bill
• Kiplinger: 10 Year-End Moves to Lower Your 2021 Tax Bill
• NerdWallet: 12 Tips to Cut Your Tax Bill This Year
• Bankrate: 12 ways to lower your taxable income this year
• CNBC: These year-end tax moves may help you save, regardless of what happens in Congress
• U.S. News & World Report: 15 Legal Secrets to Reducing Your Taxes
• Stacy’s stock portfolio
• Subscribe to the Money Talks News newsletter
• Take our course The Only Retirement Guide You'll Ever Need
• Take our course Money Made Simple
• Miranda Marquit’s website