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These year-end changes could help you save money on your taxes


File photo of money (AP)
File photo of money (AP)
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Before you ring in the new year, money experts want you to think about your finances.

"Your income, your donations, life changes, take a look at those and make those adjustments," said Jaime Quiros of FBB Capital Partners in Rockville.

7News On Your Side spoke with Quiros about year-end changes that could help you save money on your taxes.

Quiros says the end of the year is a good time to make a charitable contribution and sell any losing investments.

"If you realize $10,000 in capital gains, and you have a position that's lost $2,000, sell that position. That's a $2,000 loser and now you've reduced your capital gains to $8,000," he said.

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Anyone with a 401-k plan or an IRA should consider making an additional contribution before the year runs out.

You can also make an end-of-the-year contribution to a 529 college savings plan.

"Make sure you save up to the state maximum and that offsets some of the state taxes," he said.

If you have a Flexible Spending Account (FSA) and any money left, use it now or lose it. See what products you can purchase and shop away.

"It's in that list of items that you can use. So, do that and make sure you pay for it and have it shipped to you," said Quiros.

Here's another great tip that could help you save on your taxes: If you've always wanted to take a class, sign up now -- By paying the tuition before the end of the year, it could give you a $2,000 credit on your tax return.

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If you take care of your parents or grandparents, a tax credit could help you save up to $500 per dependent. For more information, go here.

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