8. Offset investment gains.
If you have been holding on to losing stocks, you can recognize your losses and use them to offset investment winners. In order to take advantage of this, you will need to sell the losing investments and offset your losses against your gains. If your losses exceed your gains, you can apply $3,000 of your loss against your regular income. Any extra will then be passed on to the next tax year.
9. Estimate your household income for health insurance.
Are you applying for a subsidy or discounted insurance in the health insurance marketplace this open enrollment season? If so, you will have to project your 2016 household income and family size when you apply. Start looking into any changes that may take place in 2016 (growing your family, job promotion, heading into retirement, etc.). These changes may affect the amount of the subsidy you are given to help you pay for insurance.
10. Increase your advanced premium tax credit.
If you received assistance for health insurance in the form of an advanced premium tax credit, one smart move you can make is to lower your adjustable gross income by contributing to your retirement plan, which may increase the premium tax credit you’re eligible for at tax time. If you are purchasing new insurance in the marketplace, you can also request to take half of your assistance to help pay for insurance upfront and alleviate having to pay anything back if you experience changes to your income.