2021 Year End Tax Planning Tips

2021 Year End Tax Planning Tips

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.

From Newsfeed Of Gary Carter

Gary Carter, President of GW Carter, Ltd., was a tax professor at the University of Minnesota’s Carlson School of Management and the Associate Director of the Carlson School’s Master of Business Taxation Program until June, 2010. He received a B.A. in accounting from Eastern Washington University in 1977, a Master of Taxation degree from the University of Denver in 1980, and a Ph.D. in taxation from the University of Texas at Austin in 1985. Early in his career he worked as a revenue agent for the State of Alaska, and later in public accounting for both a regional CPA firm and a Big Four Firm. His current practice was started in 1999. He has conducted tax seminars on various tax topics and has published several books on taxation.

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