3 last minute tax tips for 2014

Move up deductions: 

If your income will be high this year, move up payment on as many deductible expenses as you can. Pay bills that are due in January in December. Just like with charitable deductions, if the proof of payment is in December, you can take advantage of this write off for your 2014 tax bill. Washington explains that this strategy is popular with mortgage bills and prepaying estimated taxes before the end of the year. “There is, of course, a word of caution regarding this strategy,” says Washington. “If you think you will actually earn more money in 2015, and therefore be in a higher tax bracket, you might want to hold on to these tax deductions for the 2015 tax bill.”

Monitor retirement contributions: 

If you didn’t save the max of $17,500 in your 401(k) this year, there’s still a possibility your employer will allow you to make a lump sum contribution before December 31^st. If you’re over the age of 50, you still have time to max out at $23,000. April 15, 2015 is the deadline for funding a traditional or Roth IRA for 2014 with either $5,500 for those under the age of 49 and $6,500 for individuals age 50 or older. “If you’re an entrepreneur or small business owner and want to save in a solo 401(k), make sure to at least open your plan by December 31^st,” adds Washington. “You will then have until the April 15^th tax deadline to fund it.”