#1 Review all your securities, stock performance, and mutual funds

Have you heard of tax loss harvesting? If you have securities, mutual funds, and stocks, you may be able to reduce your tax bill and save some money through this procedure. Tax loss harvesting is a procedure that implies selling stocks and other investments of the sort that are underperforming.

By selling this stock, for example, because it is losing you money instead of creating it, you can use the loss it created to reduce the tax that you will be hit with on your capital gains. You can end up offsetting up to $3,000 of your ordinary income if the investment you sold qualifies for tax-loss harvesting.

The best way to make sure that this method of saving money works for you is to talk with a tax professional so that they can guide you and give you an accurate action plan.