Episode 27: What Are Some Tax Tips for the End of the Year?
Have your question answered on the Money Wisdom Question Series!
Thank you for joining us for Episode 27 of our Money Wisdom Question Series, where we answer common financial and retirement investment questions. Today’s question is, “What are some tax tips for the end of the year?”
Tax Changes Based on the Election
This is a tough question to answer because everybody’s situation is a little bit different. Based on the outcome of the election, if the Democrats win the state of Georgia and take control of the senate, we will probably see a drastic change in tax laws. We won’t know this until January, but if that happens, we’re going to want to have done some estate and tax planning this year.
If the Democrats control Congress and the White House, there are things that could expire this year. Lower capital gains taxes and gifting rules that are much more liberal for estate planning purposes. You want to look at possibly paying some taxes this year at a lower rate than you might in the future. Again, it’s a little uncertain, but these are things that you should absolutely look at.
Maximize Your Deductions
Also, make sure you’re maximizing your deductions. It’s very important to make sure you maximize your 401(k). If you have some gifting that you’re trying to do for kids and grandkids, make sure you make those gifts this year. Take advantage of that. Obviously, make sure your financial situation is in order first before you gift.
Take Advantage of Tax Laws Before the Year-End
Everyone should assume that taxes are going to go up in the future and I seriously doubt that they’re going to go down at all for a long time. Take advantage of some of these tax laws before the year-end. It’s tough to be specific here, so you should get a hold of a certified financial planner that’s a fiduciary, a fiduciary, or a tax specialist. Not just an accountant, but a tax specialist. They can help you decide if maybe you should pay some taxes this year so that you don’t have to pay taxes at a higher rate in the future.
Thanks for joining me and I hope you found this information helpful!
P.S. If you enjoyed this topic and want to learn more, download our offer, “Are You Paying Too Much In Taxes In Retirement“.
P.P.S. Feel free to submit questions here for a chance to have them answered!
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
What Steps Should I Take If My Retirement Savings Fall Short?
One of the biggest fears today’s pre-retirees and retirees face is running out of money in retirement – but what happens when that once-distant fear becomes your reality? Today’s question addre… -
How Will I Receive Income from My Retirement Savings?
Today’s question centers around the core of retirement planning – how do I turn my retirement savings into retirement income? After decades of building up your nest egg, life after work introduces… -
What Should My Tax Plan Be at Age 65 with $1 Million?
Approaching retirement with $1 million saved is an impressive milestone, but turning those savings into a sustainable income stream requires careful planning. At age 65, many retirees face the cha… -
Dodging the Tax Torpedo
When envisioning the next chapter of your life, the impact of taxes can often be overlooked or forgotten altogether. The reality is, without the proper planning, you may be at the mercy of an impe… -
What Habits Should I Unlearn Before I Retire?
Today’s insightful question explores the behavioral finance side of retirement planning – specifically, which financial habits you should leave in the rearview as you transition into retirement. … -
How Can You Understand and Improve Your Credit Score?
In retirement, your credit score is still relevant in achieving and maintaining financial independence. The question is, how can you best understand and improve your score to reap the benefits of … -
RMDs and You
Tax-deferred retirement accounts like IRAs and 401(k)s have allowed your savings to grow without any immediate tax burden. However, once you reach a certain age, the IRS requires you to begin maki… -
Should I Consolidate My Multiple 401(k) Accounts?
If you’ve contributed to multiple 401(k) or other employer sponsored plans over the years, you may be wondering about today’s question, is it time to roll your old accounts into an IRA? In this we… -
When Should I Consider Borrowing Against My Assets?
Welcome back to the Money Wisdom Question Series. Today’s question is, when would it be beneficial to borrow against my assets? While there are ways to borrow against assets such as a vehicle, we’… -
How Do I Avoid Tax Bracket Creep?
Today’s question is central for anyone who wants to avoid an unpleasant surprise come tax season: what can I do to prevent tax bracket creep? Jake Doser, CFP®, CPWA® joins the Money Wisdom Questio…
