Year-end money moves experts say consumers should make right now

PHILADELPHIA (WPVI) — As the year draws to a close, financial experts say consumers should take advantage of benefits and tax credits before they expire.

Bobbi Rebell is a certified financial planner and consumer finance expert at Cardrates.com.

She urges employees to review company perks that often go unused.

“For example, a lot of companies now give you benefits if you are working from home, even part-time. You might have a technology allowance. You might have a gym membership allowance. Whatever it is, make sure that you go through the benefits,” she says. “They do change from time to time, and you might find some great freebies that you weren’t necessarily using.”

Rebell also advised spending flexible spending account balances that you’ll lose at the end of the year, maximizing employer retirement and health savings contributions, and using credit card perks such as quarterly credits.

For instance, she says the American Express Platinum card offers quarterly credits at retailers like LuluLemon and Saks Fifth Avenue, as well as a $100 credit on dining booked through Resy.

She added that consumers should look through and cancel unused subscriptions.

“If you’re not using it on a regular basis, get rid of it. You can always change your mind. And the great thing when you change your mind is they will always take you back,” says Rebell. “And not only that, they’ll often take you back at a better price, a better opportunity than you had before.”

Shopping around for car insurance and cell phone plans can also save money.

Tax law changes add urgency to some financial decisions. The 30% tax credit for energy-efficient home improvements expires Dec. 31.

Chuck Minnich of Foundation Capital Management said items such as insulation, windows and doors must be purchased before year’s end to qualify.

Charitable giving strategies should also shift. Minnich explains that those who itemize deductions should donate before Dec. 31 because next year the tax incentive will be reduced, while those taking the standard deduction may benefit from waiting because the deduction will go up for those consumers.

“It can be as soon as January 1. If you take the standard deduction, you’re allowed to also deduct charitable contributions up to $1,000 a person,” he says.

Minnich also highlighted the senior deduction available this year: married couples earning under $150,000 and singles earning under $75,000 can claim an additional $6,000 per person.

He cautioned retirees to manage taxable income carefully, noting that higher taxable income can increase Medicare premiums, reduce deductions and trigger taxes on Social Security benefits.

At age 73, retirees must begin withdrawing from IRAs, which counts as taxable income. Minnich suggests directing some of those withdrawals to charity to avoid taxes.

Financial experts say these steps can help households maximize benefits and prepare for the year ahead.