As the end of the year approaches, it's important to start thinking about your tax situation. Taking some time now to plan can save you a lot of money and frustration come April. Here are four tips to help you with your year-end tax planning.
Tip 1: Max out your retirement accounts
If you haven't already done so, now is the time to max out your retirement accounts. Doing so will lower your taxable income and help you save for the future. If you're not sure how much you can contribute, please let us know. We specialize in retirement planning and are ready to assist with all your retirement needs. Holding a RICP® designation means we are uniquely qualified to assist with planning and executing retirement strategies. We’ve had detailed training on withdrawal planning approaches, claiming Social Security, addressing long-term care and health-care needs, securing housing, and planning for income taxes and legacies.
Tip 2: Review your deductions
Make sure you're taking advantage of all the deductions and credits you're eligible for. Common deductions include things like mortgage interest, property taxes, and charitable donations. Reviewing your deductions now can help you get a better idea of what to expect come tax season.
Tip 3: Consider selling investments
If you have investments that have lost value, selling them now may be a good idea. By selling at a loss, you can offset any capital gains you may have had during the year and lower your tax bill as a result. Of course, it's essential that you talk with a financial advisor before making any major decisions.
Tip 4: Stay organized
Throughout the year, make sure to keep track of all your receipts and other documentation related to your taxes. This will make it much easier come tax season and help ensure you don't miss any deductions or credits you're entitled to. In addition, keeping organized throughout the year will save you time and stress when April rolls around.
Tax planning may not be the most exciting task, but it's necessary nonetheless. You will be thankful that you took the time now to plan so that you aren’t as overwhelmed later. These four tips will help get you started on the right track.