FALL Is The Time For Year-End Tax Planning!

The Bottom Line:

• Contribution/ distribution may = deduction

• Plan ahead to maximize health care costs

• Giving is good!

• Keep Advance Child Tax Credit Docs

• IRS = LATE

FALL FEEEELS FOR DAYYYSS (sorta? #thanksclimatechange)

While hiking a color-kissed hill or sipping a Hay Bale Latte may not SEEM like the time to think accounting in a low-key “I woke up like this” kinda way, it sure is! Year-end planning keeps financial #fallfeels fuzzy all the way to taxtime.

Westimate!

First – We’re a broken record** but please use the IRS Withholding Estimator. Surprises are great at country diners & KISS concerts but not at taxtime — you should know exactly how much is deducted from every paycheck. You’ll need some docs/ info (ie stubs, statements, most recent taxes) — a great headstart for April!

(**record (noun) /ˈrekərd/ Olde English: a curious sphere used mostly as a flat surface for Fleetwood Mac’s angel d----  to play ancient runes, resurrected 2021)

Contributions & Distributions & Solutions OH MY

Contributions (Take my money and giveitame later):

If you contribute more from every paycheck to a work-provided retirement account (401K, 403B, Thrift Savings Plan) you reduce your take-home pay and adjusted gross income, thus lowering the income tax you owe.

Contributing to a traditional IRA, especially if you do not also have a work-provided plan, may be deduction-eligible.

Important: Always check with an accountant before making any cray-cray financial changes^^

Distributions: (Gimme my money back):

If you are roughly 70-ish there are plan-specific rules about mandatory yearly distribution (translation: penalties if you don’t take your $$) so ask a friendly accountant.

Play Doctor with Deductions

Make the Most of Medical Expenses

Have you met your yearly deductible? If not, go grab all those checkups, rad cat-eye specs, and a celebratory colonoscopy yippee.

Contribute to a Health Savings Account (HSA)

If you have a high-deductible health insurance, contributing to a Health Savings Account (an account that can only be used for health care) may make sense, as, in eligible cases, these are untaxed deposits.

Give Stuff Away!

Giving to charity is both fulfilling and deductible! For tax purposes, confirm deductibility BEFORE giving, and decide between donating cash or physical items.

Also, you can gift up to 15K per individual this year without having to pay gift tax. So if y'all wanna tip the waitress really well, just stay under 15K!

Have Kids, Take Money & Keep the Proof

"Why am I getting paid for my kid, what are these stupid papers, and may I recycle them?"

Short answer: an awesome Advance Child tax Credit, proof of it, and NO FRIEND NO- we love The Precious docs! Save The Precious and give to us The Precious at taxtime!

IRS = IRSLOW

IRS = late. Very, very late. You are not forgotten! Well you are. But you are not alone! We are all forgotten! They are late.

October-November-December isn't just for boots-n-cats-n-boots-n-hats-n pumpkin-flavored contact lenses! Get your financial house in order, start YE planning, and you're sure to have a Good Day.