5 End of The Year Tax Tips

Now is the time to save on taxes before the end of the year. Owe, just right, or refund. That’s the game for taxes. We would like for it to be just right (own nothing and receive nothing). However, most of us fall into the owe the government or refund from the government groups. With the tax rules for benefits and deductions changing almost every year, it can be hard to keep up and get it just right. Well, there are some common ones that haven’t changed. Yes you have until April to file taxes; however, there are steps you can take now to put more money towards your financial goals and save on taxes.

1) Increase contributions to retirement accounts.

Try to max out your tax-deferred retirement accounts before the end of the year. If you’re employed this will likely be a 401(k) or equivalent account. The maximum contribution is $18,000 or $24,000 if you’re over 50 years old. If you can’t max out you contribution, at least contribute enough to receive your employee match if offered by your company. Not sure if you have an employee match or how much it is? Contact your benefits office or HR.

You can also contribute to your Traditional IRA (individual retirement account). Contributions made to your Traditional IRA are not taxed. However, you will pay taxes on withdrawals. You can get a tax break now and allow the money to grow tax-free. Once it’s time to withdraw hopefully, you’ll be in a lower tax bracket and won’t have to pay as much taxes on the withdrawal of your money.

If you’re self-employed, outside of an IRA you may also have a solo 401(k). You can contribute 20% of your income up to $53,000. You can make tax-deferred contributions up until your business files taxes.

2) Withdraw distributions from a traditional IRA.

According to the IRS, when you’re over 70.5 years old, if you don’t distribute at least the minimum required amount then you’ll be punished with a 50% penalty on the amount you should have withdrawn. Yep, the government can take half of the minimum required distribution (RMD) if you don’t take it out. If you are the beneficiary of an IRA you also have to take out the RMD.

3) Delay the bonus.

If your company provides an end of the year bonus, see if you can delay it until after December 31st. The bonus will then apply to the following year, saving you on taxes this year. If you know you’ll be in the same or a lower tax bracket next year this is a great method to save on taxes.

4) Delay receipt of invoices.

As an entrepreneur, you can change the due date of your invoices to the following year. Income not received this year cannot be included in this year’s taxes. Delaying receipt of payments can save you money for this tax year. Again use this trick if you know you’ll be in the same or a lower tax bracket next year.

5) Donate to charity.

Donating to charity is another great way to decrease your tax burden for the year. If you haven’t made your charitable contributions, get them in by December 31st. Be sure to get a receipt of acknowledgement for the donation that shows the monetary value of the donation. If your donation is greater than $250 then you definitely need that receipt. However, if your donation is less you can also use your bank statement or credit card receipt as proof.

Tip for businesses:

Tax benefits can expire and unless you have your pulse on it you won’t know which benefits are expiring. If you have a business talk to a tax professional so that you make sure you take advantage of all the tax benefits for which you’re eligible.

Photo credit: Elvert Barnes

About Dr. Maria James

Dr. James, The Money Scientist, has expertise with designing income management, debt management, and wealth strategies to help you live your best life. She is the founder of Pocket of Money, LLC and the creator of The Wealth Protocol™. Dr. James has also been a guest financial expert on ESSENCE, WEAA, Madame Noire and more.

Why Repeat Business Is Not an Accident

**this post was originally featured on ConstantContact.com/blogs**

 

While a customer may find your business by accident, whether or not they return is a conscious decision.

 

These days, when there are so many options to get what we need online or around the corner, what can really inspire customers to come back is you. Or more specifically, it’s the experience customers have when they’re at your place of business.

It doesn’t matter if you’re selling exotic vacations or tax consulting services, if you can create a WOW! experience for the customer, you’ll make an indelible imprint on their memory.

The next time they’re thinking about the products and services you offer, or a friend mentions that they need something you sell, the memory is triggered. This is how first-time customers become repeat customers and your own personal word-of-mouth marketers.

Creating a WOW! Customer Experience

How do you create that wow experience?

It’s easier than you think. It doesn’t need to be a grand gesture and it doesn’t need to cut into your profits. You can create a memorable experience for customers in lots of different ways. Here are some of my favorite examples.

Allegria Spa in Beaver Creek, Colorado is dedicated to providing customers with a personal touch every time they receive a spa service or an email. By focusing on delivering a personalized experience both in person and online, Allegria has a keen understanding of the needs and interests of its customers on an individual basis. This knowledge continues to grow through face-to-face customer interactions and by analyzing email marketing results.

Allegria applies this knowledge to improve the customer’s onsite spa experience and create even more targeted messages and offers that clients look forward to receiving. Not only are Allegria’s response rates double the industry average for salons and spas, their personalized touch and high customer satisfaction ratings have landed them in the pages of Forbes, CNN Travel and Travel & Leisure magazines.

Another great example is the law firm Rains Lucia Stern, PC. The firm’s approach to marketing is all about building strong client relationships. They do this with an integrated marketing approach that includes email, events, and surveys.

The firm’s emails provide helpful information to clients in the form of snippets of articles written by attorneys that link back to the firm’s website. As part of a full engagement marketing cycle that’s designed to continuously improve the client experience, the firm regularly checks in to make sure its content is covering the topics that are of most interest to clients.

Through regular communications and a dedicated feedback loop, the firm is able to attract upwards of 200 attendees at its monthly educational events. Also, by providing clients with an opportunity to share their insight and opinions, Rains Lucia Stern, PC is able to strengthen client relationships and foster positive word-of-mouth while ensuring every event and email that clients receive is engaging and valuable.

There are many other tried-and-true practices that sway customers to choose you over the competition.

 

These include gift-wrapping, complementary wine tastings, or free product assembly. Some smart entrepreneurs even thank their customers by presenting them with an offer that has absolutely nothing to do with their business. For example, customers that spend a certain amount at Urban Elements furniture are presented with a gift certificate for a free massage offered by another local small business.

Getting to Know Your Customers

The key to creating wow experiences is getting to know your customers on a personal level.

Now you may be thinking that you couldn’t possibly get to know every single customer individually. For many small businesses, that’s true. What you can do, however, is focus on engaging your most active customers. It’s the old 80/20 rule where 80 percent of your business comes from 20 percent of your customers.

When you engage your most active customers, they’ll buy more and they’ll buy more often. Not to mention that they’re also more likely to refer business to you.

There are several ways to learn more about your customers without coming across as intrusive.

You can start by recognizing the different types of customers your business most often attracts and creating experiences that reflect their particular needs. For example, an urban kitchen supply store may attract a lot of first-time apartment dwellers. The business owner can engage this audience by making recommendations on products, offering cooking classes, or putting together a “kitchen starter-kit” that includes all of the essentials.

 

Other ways to learn about your customers are to analyze your newsletter content to see which articles and offers are most clicked on, shared and forwarded. You can also take a poll on your Facebook Business page or simply engage in good old-fashioned face-to-face conversation.

Engagement + Wow Experiences = Your Secret Weapon

Small business owners that engage their customers have a huge advantage over chains and big box stores. This is because they’re able to get to know customers on a personal level, which results in better service.

Take advantage of this distinct differentiator and bring it to the next level by creating a wow experience and then personalize it whenever possible. The more personalized the wow experience is, the more memorable it becomes, therefore fueling your repeat and referral engine.

Author:

Christopher Litster

I'm the Senior Vice President, Sales & Marketing. Been around Constant Contact for 9 years and have had an amazing time as we have... 

See the full original article:  http://blogs.constantcontact.com/repeat-business/

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