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Money Moves to Make

Before Saying ‘Bye
Forever’ to 2020
Published on: Nov 24, 2020 !"#

Spencer Gabor

The Story

This year is almost over. Finally. But don’t mentally move on until
you’ve crossed a few more things off your money to-do list.

I’m exhausted. There’s more?

Some things can’t wait. A little more effort (really, just a little) now can
pay off later. Here’s what to do now:

Do good and keep receipts. Donating money on or before

December 31 can trim your 2020 tax bill. A CARES Act provision
lets you deduct up to $300 in donations to qualified nonprofits,
even if you take the standard deduction instead of itemizing. Just
be sure to vet charities before you donate, so you know your
money will be put to good use.

Don’t leave any work perks in 2020. Like your FSA money, which
may go away if you don’t spend it (unless your company offers a
grace period or lets you roll some over). Heads up that you can
use FSA funds to buy OTC meds, contacts, tampons, and more.
Ask HR if there are any other use-it-or-lose-it benefits, like a
stipend to set up your WFH space. Or even some help repaying
your student loans. A CARES Act provision lets employers cover
up to $5,250 of employees’ student debt, tax-free. But it expires
on NYE, so check in ASAP.

Check in on your travel rewards. Credit card points typically last

forever. Airline miles and hotel rewards usually don’t – though
some companies have extended their expiration dates, thanks to
the pandemic. So do a quick status check. If your points or miles
expire soon, look for ways to redeem them now, like buying from
the airline or hotel’s shopping portal.

Figure out if any recent life changes will affect your taxes. Like if
your salary changed, you got a side hustle, or you relocated your
home office to a different state. Those moves could mean a more
complex tax return, so be ready. Get your paperwork in order
now, including tax forms you might not have needed last year.

Anything else?

Yep. The end of the year is a good time to check in on your money
goals. A few ideas:

Save more for (way) later. You have until Tax Day 2021 to make
retirement contributions that count for 2020. But the sooner you
invest, the more time your money has to grow. Also think about
upping what you set aside for retirement in 2021 by 1% or 2%. You
probably won’t even notice the difference in your paycheck. Extra
credit: look into rolling over any 401(k)s from old employers.

Check in on your budget. Don’t wait for resolution season to

make sure your spending plan is still working for you. Start now by
cutting extra costs you can live without. Try to negotiate down
fees for services you could be overpaying for. (Talking to you,
cable bill.) If your federal student loan payments have been
paused for a while, add that payment back into your January
budget.

theSkimm

This past year may have been rough on your wallet. And some of your
plans probably had to take a backseat to the pandemic. Doing some
quick chores now – then revisiting your longer-term goals – can help
you get back on track in 2021.

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Skimm'd by: Ivana Pino, Stacy Rapacon, and Elyse Steinhaus

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