There is still an opportunity to lower your tax liability before the year ends.
This can be accomplished in a Charitable and NonCash Charitable Contributions:
Charitable Contributions: If you are electing to itemize your allowable itemized deductions on Schedule A of your 2016 federal income tax return, then charitable donations are an excellent way to accomplish this goal. Whether the contribution is in the form of checks written and deposited into the U.S. Postal Box before midnight on December 31, 2016, or made online with a credit card or direct transfer from a bank account, your tax bill can decrease based on your individual marginal tax bracket. For example, if your bracket is at 25% then you will save 25 cents on each dollar contributed.
Life events such as marriage, divorce, death of a spouse, birth or adoption of a child, a new job or the loss of a job and retirement, all impact year-end tax planning.
Marriage: Marital status (single, married or divorced) for the entire tax year is determined on December 31st. Because the income tax brackets vary depending upon filing status, a marriage penalty or a marriage benefit may result for any particular couple.
As a general rule, if each partner has income approximately in the same amount as the other, they will pay more filing as a married joint return than as two single individuals. Accelerating or postponing marriage or divorce at year- end might be considered based upon this difference in tax brackets.