It Pays to Pre-pay

Mike Miller Uncategorized

We all know that people would rather get a refund on their taxes than have to owe taxes in April. So, here are a few ways that may reduce your tax liability for 2018…

If you are a business owner and your income out-ways your expenses this year, then it would probably be worth pre-paying some of your bills before the end of the year. You can mail bills like insurance payments or office rent this week, then it will be postmarked in 2018, so you can use it on your expenses for this year.

If you are an employee and you didn’t change your withholding earlier this year, you may owe more than you think. It is better to pay a quarterly estimated taxes now, than have a tax-time surprise.

If you are a home-owner, it may be worth pre-paying your property taxes before the end of the year. It will help reduce your tax bill owed in April of 2019.

If you are divorced and owe alimony, it can be written off on your taxes in 2018, but not in 2019. So, it may be worth pre-paying your alimony now.

Of course, all of these depend on your specific tax situation. So, always check with your accountant first.