There are just 22 days left of 2021, and there is still some time left to consider these 15 Year-End Tax Tips and act on them. Additionally, they may have a positive impact on your 2021 taxes.
Here are the tips for you to act on:
- Make last-minute charitable donations.
- Review and maximize use of the $15,000 annual gift-giving limit. It will increase to $16,000 in 2022.
- Review your investment portfolio for capital gain and loss planning.
- Use your annual $3,000 net capital loss limit to lower ordinary income if appropriate.
- Maximize the kiddie tax threshold rules ($2,200 of unearned income taxed at your child’s lower tax rate).
- Consider fully funding retirement account annual contributions.
- Identify any potential tax forms required for household employees.
- Consider donating appreciated stock owned one year or longer
- Review retirement accounts. While required minimum distributions (RMD) were waived last year, you must take your RMD for 2021.
- Review medical and dependent care funding accounts to ensure you do not lose contributions that do not rollover into the new year.
- Consider retirement plan rollover options into Roth IRAs.
- Estimate your tax liability and make any final estimated tax payments. This is especially important to small business owners that must pay taxes on any potential loan forgiveness.
- Create a list of expected 1099 and other tax forms you will be receiving. Remember to note that you may be receiving 1099-NEC forms that were new last year versus a 1099-MISC.
- Review your W-2 withholdings and file any changes with your employer for the upcoming year.
- Begin organizing your tax records.
Should you have any questions on these 15 tax planning strategies, ask for help before taking action. The requirements and documentation needed are essential to ensure you receive the full tax savings benefit in many cases. Contact us, https://sfstaxacct.com/contact/ or set up an appointment, https://sfstaxacct.com/request-appointment/.