15 Year-End Tax Tips

December 17, 2021

It's that time again! The final chance to reduce your annual tax bill is here. Spend a few minutes considering the following ideas:

1. Make last minute charitable donations.

2. Review and maximize use of the $15,000 annual gift giving  limit.

3. Review your investment portfolio for capital gain and loss  planning.

4. Use your annual $3,000 net capital loss limit to lower  ordinary income if appropriate.

5. Maximize the kiddie tax threshold rules ($2,200 of unearned  income taxed at your child’s lower tax rate).

6. Make last minute contributions to your retirement account to  take advantage of the annual contribution limits.

7. Identify any potential tax forms required for household  employees.

8. Consider donating appreciated stock owned one year or longer.

9. Review retirement accounts. Make any required minimum  distributions.

10. Review medical and dependent care funding accounts to ensure  you do not lose contributions that do not rollover into the new year.

11. Consider retirement plan rollover options into Roth IRAs.

12. Estimate your tax liability and make any final estimated tax  payments.

13. Create a list of expected 1099 and other tax forms you will  be receiving.

14. Review your W-2 withholdings and file any changes with your  employer for the upcoming year.

15. Begin organizing your tax records.

Should  you have any questions on these ideas, ask for help prior to taking action.  In many cases, the requirements and documentation needed are important to  ensure you receive the full tax savings benefit.

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