2021 is winding down fast, but you still have time to make some moves that will cut your tax bill and leave more money in your pocket.

Capital loss harvesting
If you have some investments that have gone down in value since you bought them, you might consider selling them and taking a loss. You’re allowed to offset any capital gains you’ve taken this year with the losses, as well as up to $3,000 in personal income.

Retirement plan contributions
If you have extra savings you can live on right now, you may consider increasing your 401(k) salary deferral. The contribution limit for 2021 is $19,500 for those under age 50, or $26,000 for those 50 or older. These are pre-tax contributions. The money will go into your pocket vs. the IRS.

Charitable donations
Even if you’re not itemizing your deductions in 2021, you can still get a tax benefit for your charitable giving. For 2021, you’re able to make a deduction up to $300 for single filers or $600 for a married couple filing jointly without itemizing. If you do itemize, you can deduct the full amount of charitable donations made in 2021.

Use your time wisely, the more you can save in taxes – the more you can save for yourself.

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