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Financially Fit: Tax Season Edition

Brought to you by our friends at Brier & Brier.

Before you file your taxes:

Although many strategies to reduce your 2015 taxable income ended on December 31, 2015, for some folks there are still some options. However, if they do not apply to you, you may be able to use these to reduce your 2016 taxes.

Retirement Funding: If you are self employed or not covered by a company retirement plan, you may still be able to reduce your taxes by putting money away for retirement. For the self employed, you can still set up or fund your existing SEP and for those not covered under a company retirement plan you should look into establishing an IRA.

FSA: Do you participate in a flexible spending account? If you are so fortunate to have an employer offering this benefit, be sure to take full advantage and fund it to cover your qualified anticipated medical and child care expenses. If you have a balance in your account from 2015, you can still use it to cover unreimbursed 2015 expenses and check with your employer to see if your plan allows submitting new expenses through March 15, 2016.

Donations to Charities: We have many wonderful non-profit organizations in Rhode Island that are worthy of our support. It is too late to get a 2015 deduction, but consider making small donations throughout 2016 to possibly reduce your 2016 taxes.

Insurance: Most insurance is not tax deductible, but this is a good time to review your personal and business insurance to be sure all is in good order. If you are approaching age 65, be sure to start early checking out your Medicare options.

Jeffrey G. Brier, CLU, ChFC CASL

Brier & Brier

Insurance, Employee Benefits and Medicare Planning