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. |