Watch CBS News

Financial Experts Say Right Now Is The Best Time To Maximize Your Wallet & Prepare For Tax Season

MIAMI (CBSMiami) – With 2021 coming to a close, there are a few last-minute preparations you can take to get ready for the upcoming tax season.

Financial experts say right now is the best time to maximize your wallet.

"If you have the funds, maybe you got a Christmas bonus or are working overtime, maybe increase 401k," said Andy Mattingly, the chief operating officer at Forum Credit Union.

Mattingly says all contributions must be made by December 31.

"If you're in high-deductible health plan and have a health savings account, that will reduce your tax bill so make sure you make that maximum contribution," Mattingly said.

Making charitable donations will not only help those in need but can be itemized on your taxes.

"You can save tax no matter situation by giving to charity up to $600 if you're married or $300 if you're single," said Greg Geisler, clinical professor of accounting at Indiana University.

And it's never too early to start thinking about next year.

"What you want to look at in 2022 is where you are with your savings goals. One thing we encourage people to do is you need to be saving at least 10 percent of your income for retirement," said Mattingly.

Mattingly recommends setting a budget and sticking to it.

"People need to make sure they don't overextend themselves with the holidays," said Mattingly.

Geisler recommends filing your taxes early once you have all the necessary information.

"The reason why is cyber theft of tax ID numbers is still going on," he said.

The holidays are a big time of the year for scams, so experts recommend monitoring your accounts and staying vigilant when shopping online.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.