Drain your flexible spending account
Use up the money in your flexible spending account. Yes, the U.S. Treasury Department and the IRS this year changed the long-standing “use-it-or-lose-it” rule; employers can now offer a carry-over of up to $500 in unused health FSA funds to the following year or to continue a grace period option giving employees a 2½ month extension to spend remaining FSA funds, according to the Society for Human Resource Management. But employers aren’t obligated to offer the carry-over or the grace period option.
Donate to charity
Clean out your closet and your attic. If you’re looking for ways to cut your 2014 tax bill and do good at the same time, consider donating to a charity. Of course, if you want to claim these donations for a tax deduction, you must itemize your deductions rather than taking the standard deduction. Listen to America’s wealth coach explain the steps you should take to make sure you have some more dollars in your wallet in the new year.
Year end housekeeping
The end of the year is also a good time to review your yearly budget and make sure you’re on track and not overspending, said Fillet. Also, check your emergency fund. And don’t forget to review your estate documents. Did anything in your life change? If so (and even if not), look over your wills, trusts and beneficiary designations, and make any necessary changes.
Review your monthly services
Do you ever get a sense you’re paying too much for cable TV or Internet service? Now’s a great time to do something about it. Check the competition for all your monthly services to see if you can find cheaper subscriptions that will provide more savings.
(Be sure to listen to “NewsOne Now” with Roland Martin, weekdays at 7 a.m. EST and watch at 9 a.m. EST on TV One. Subscribe to the “NewsOne Now” Audio Podcast on iTunes.)
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