As the end of 2022 is approaching, you should be aware of the different options available to you and how to ultimately decrease your 2022 tax bill.
Reducing your taxable income is a way to KEEP more of the money you made throughout the year. This can be done through…
(1) Tax-loss harvesting
(2) Contributing to tax-deferred accounts
Another way is for those individuals who are charitably inclined to use donations in a tax-efficient fashion. This can be done through…
(1) Donating appreciated assets
(2) Giving through a donor advised fund
Lastly, individuals can prepare for future taxes by applying certain strategies before the year end. These tactics can potentially reduce the overall future tax bill of the individual. Some ways are…
(1) Roth IRA contributions/conversions
(2) IRA or 401(k) distributions during a low-income year
(3) Annual gifting
(4) Qualified Charitable Donations (QCDs)
These are a few tax-planning tips that are designed to help better prepare individuals for their future tax bill. As uncertainty lies ahead for future tax rates and the rules regarding your retirement savings accounts, it is important to prepare today and build a plan to protect your future self!
Year End Tax Planning Tips
Corey Shevlin
Corey serves as an investment adviser representative and handles the investment related administration for The Lynch Financial Group. He currently holds his Series 65, Life and Health Insurance licenses. He attended the University of Delaware and graduated with a Bachelor’s degree in Political Science and Criminal Justice in 2019.