Be Aware of Itemized Deduction Changes: This area has experienced a big change with the new tax law. Itemized deductions such as state income taxes paid, real estate taxes, mortgage interest, charitable contributions and medical expenses can make a significant dent in taxable income in 2018.
Contribute to Your Dependent Care Account: You have the ability to defer up to $2,500 ($5,000 for a married couple) to a dependent care flexible spending account (FSA), which includes day care, nursery school, day camp, babysitters, before/after school programs and caregiver expenses for disabled individuals who live with you.
Health Insurance: Many will have the ability to change their options to take advantage of a flexible spending account (FSA) or health savings account (HSA). Both of these accounts allow individuals to save on a pre-tax basis for current and future health costs.
Retirement Savings: Max out your pre-tax employer sponsored retirement plan and/or a traditional IRA. Make sure you take full advantage of any employer matching contributions. You have until April 15, 2019 to fund your IRA contribution for the 2018 tax year. Think ahead and use some or all of your refund to fund your 2018 IRA contribution.
Investment Income: If you have taxable investment accounts, you may want to review your year-to-date capital gains or losses. It may be beneficial to postpone or take capital gains, depending on your current income situation
