Reasons that you might need a year-end tax planning meeting:
– Verify that your wage withholdings are in line with expectation.
– Review your business profit and update final quarterly estimated payments.
– Determine capital gain impact of significant asset sales such as business, stocks, principal
residence or rental property.
– Standard deduction vs. itemized deduction planning.
– Maximize retirement contributions for employer-sponsored plan and self-employed plans.
– Changes in employer, geography or marital status.
– Discuss any phaseouts and thresholds that may impact the return.
– Year-end gifting.
Tax considerations for filing season 2022 for individual income tax filers:
– If itemizing deductions, consider accelerating payment of property tax, mortgage interest,
medical expenses and charitable donations before year-end to maximize deduction.
– Realize investment losses to offset gains up to an allowable net loss of $3,000 from other
– Maximize your 401k contribution ($20,500 max, plus $6,500 for age 50 and up) or traditional or
Roth IRA ($6,000 max, plus $1,000 for age 50 and up), subject to income thresholds.
– Verify you have taken any required minimum distribution from traditional IRAs for individuals
aged 72 and older.
– Maximize the gift tax exclusion by gifting up to $16,000 to each individual ($32,000 for married
– Explore electric vehicle and energy efficient tax credits made possible by the Inflation Reduction
Act of 2022.
– Make plans to use your flexible spending account funds by yearend.
Should I meet with my tax and investment advisor before year end? A few reasons why you should:
– There is a significant change in income from the prior year which may lead to a change in tax
– You are self-employed and need consultation on what amount to make as a retirement
– Develop an expectation for capital gains or losses, dividends and interest coming from your
taxable investment accounts.
– Eliminate any confusion regarding retirement distributions, conversions or rollovers that
occurred during the year.
At Kroon & Mitchell we believe in an integrated approach to tax and investment. Any investment strategy has tax implications. We customize our approach based on your needs and financial goals. Contact us for a free consultation.