Money Monday: How to save on taxes and avoid charity scams this holiday season

Money Monday

LANSING, Mich. (WLNS) – The year is almost over, and that means it’s time to start thinking about your taxes.

6 News is here for you with ways you can save by making changes with your deductions and your investments.

“If you want to reduce your tax bill, you want to put some money into your retirement account through work. Now I know everyone doesn’t have that, so I take that as a caveat, but if you just push up the percentage for the last couple of pay periods, you might save yourself real money come April. And again, this is for pretax retirement accounts,” said CBS Business Analyst Jill Schlesigner.

“The other issue is, a lot of people had strange income patterns over the last year. You probably want to go over to the irs.gov calculator, figure out if you’ve withheld enough money,” said Schlesinger.

“If you’re self-employed, maybe you want to make some sort of payment as a quarterly estimate. Amid COVID, Congress actually was able to create a way for more people to get a tax deduction with their giving. So normally about 90% of taxpayers, they file the standard deduction. You don’t usually get any credit for giving money away,” said Schlesinger.

Schlesigner is also ringing warning bells about fake charities that pop up around the holidays.

“This time of year, you get an inbox email ‘Oh, give to this charity, the charity seems familiar, but it’s not the charity you actually know. So before you give any money, please make sure the charity is legit.”

IRS.gov. has a search tool where you can make sure that a charity is legitimate.

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