,0Year-end tax planning is as much about the 2022 tax year as it is about the 2021 tax year. There’s a real opportunity for tax savings when you can predict that you’ll be paying taxes at a lower rate (for example, if your income will be significantly different) in one year than in the other. If that’s the case, some simple year-end moves can pay off in a big way.
- Reducing the amount of taxable income
- Reducing tax rate
- Controlling the time when the tax must be paid
- Claiming any available tax credits
Alternative minimum tax (AMT) facts
We also must prevent any year-end maneuvers, like deferring income and accelerating deductions, which can actually hurt you.
IRA and retirement plan opportunities
Traditional IRAs and employer-sponsored retirement plans, such as 401(k) plans, allow you to contribute funds pretax, reducing your 2021 income. For 2021, the maximum amount you can contribute to an IRA stays the same of $6,000 and an additional $1,000 catch-up if over 50.
With a simple financial Planning system we will guide you through the basic steps of individualized financial plan.
Navigating competently through the life stages of employment, marriage, home ownership, parenting, eldercare, divorce, retirement and ultimately death — and all the stops in between — requires knowledge acquired through continual self-education.
- What are your current assets, income and expenses?
- What are your goals?
- How are we going to get from here to there?
- Monitoring your life plan