Year End Tax Deductions for 2021

Tax Planning

Stephanie Lorntzen

If you’re reading this before January 1, it’s not too late to reduce your tax liability for 2021. If you itemize your deductions, consider these tips:

Make a charitable contribution to a qualified charity by December 31st.
Make a contribution to your 401k or traditional IRA.
Sell investments that have gone down in value to offset any investment gains.
If you’re planning on taking a course to improve your skills, you can pay the tuition for the next quarter by December 31st.

If you’re looking for additional tax information, check out our articles on the home office deduction during the pandemic, pandemic-related tax deductions (or not), and tax planning explained. We’ll be sharing more tax tips, particularly for business owners, in the coming months.

About the Author

Stephanie Lorntzen is a CPA who has worked for both large accounting firms and small businesses. Her background is in auditing, financial analysis, and financial reporting. For Numberwise, she helps business owners by answering all their questions about where their money is going.