There are a number of different tax planning moves you can make before December 31st to reduce your taxes or take advantage of year-end financial planning strategies.  Let’s start here, and feel free to reach out if you want to talk further.  

Have you contributed to your retirement accounts?

If you’re part of a 401k plan through your employer, you can likely contribute up to $20,500 plus an additional contribution of $6,500 if you’re age 50 or above.  Most taxpayers can contribute up to 100% of their earned income to a traditional or Roth IRA up to the limit of $6,000 plus an additional contribution of $1,000 if you’re age 50 or above.  

Check out our 2022 Financial and Retirement Planning Facts for more information.

Can you do any tax loss harvesting?

If you have tax losses in an investment account, you may be able to capture those losses to offset investment gains now and/or in the future.  The rules around buying and selling taxable securities can be complicated.  We would likely want to Include your tax advisor in those discussions.    

Do you have any additional tax deductions available to you?

You may have access to tax deductions which could help lower your taxable income. Please talk with your tax advisor about deductions that may be advantageous to you and your family.

Can you defer any income?

You may be able to defer some income into 2023.  This could make sense if you’re in the same or lower tax bracket in 2023.

Have you spent your FSA funds?

A Flexible Spending Account (FSA) has the use it or lose it feature.  If you have made a contribution for 2022, review what’s left and how you can disperse those funds to your advantage.