How to Save on Taxes (You Must Act by Dec. 31!)

The tax year ends on December 31.

Before you prepare and efile your 2016 federal Tax Return on efile.com, you may want to ask yourself this question:

"How can I save money on my taxes?"

There are three ways you can save money on your taxes:

List Item 1 Spend less money on everyday purchases throughout the year. Use our simple day-to-day money saving tips for frugal living and maximize your monthly budgets!

List Item 2 Update your paycheck withholding on your Form W-4 and receive your tax refund money now or owe less tax when you file your next tax return.

Use the free efile.com Taxometer tool to find out how much tax to withhold and reach your tax goals!

List Item 3 Claim tax breaks you qualify for on your tax return by December 31.

How Do I Claim Tax Breaks on My 2016 Tax Return by December 31?

Though you cannot file or efile your 2016 Tax Return until January 2017, it's important to consider which tax credits and tax deductions you can claim on your 2016 Tax Return before 2016 ends. For example, if you have a child born on January 1, 2017, you cannot claim the Child Tax Credit for your 2016 Tax Return; you would have to wait until the beginning of 2018 to claim the credit on your 2017 Tax Return.

Here's something else to consider: the values for each tax credit or tax deduction often vary by Tax Year. Once the value of a credit or deduction for a Tax Year expires (let's say 2013), you can only claim that value on a 2013 Tax Return; you cannot claim 2013 values on a 2016 Tax Return.

This is why we strongly recommend tax return planning throughout the year in order to take advantage of as many tax credits and deductions you qualify for by the end of the year. Use the free efile.com tax calculator to easily plan your tax breaks and estimate your tax refund.

Avoid Surprises by using the FREE efile.com Tax Calculator and Tax Refund Estimator!
Free Tax Refund Estimator

2016 Tax Credits

Review a complete list of tax credits you can claim on your 2016 Tax Return.

2016 Tax Deductions

See a comprehensive list of tax deductions you can claim on your 2016 Tax Return.

Attention: Expired Tax Deductions, Credits, or Exemptions

There are tax breaks that are officially expired. This means that under current law, none of these credits and deductions are available to claim on 2016 Tax Returns. Our expired tax laws page provides details on these tax breaks.

We will update our site with the latest information on extended tax breaks as soon as any official announcements are made. Stay up to date on the latest tax law changes with efile.com!

Related Topics & More Tax Tools

Tax Return Planning Guide

Itemized Deductions or Standard Deductions?

Tax Return Preparation and Tax Deduction Checklist

More Year-End Tax Estimate and Tax Planning Tips

Use the efile.com Taxometer Tool to update your W-4 tax withholding and reach your tax goals!

Estimate your 2016 refund or tax payments: Use the FREE Tax Return Calculator

Want to claim a dependent? Qualify for Head of Household filing status? Play with our FREE Tax Toys & Tools!