Tax laws shift every year, and what saved you money last season might cost you this one. Stay proactive with your tax plan to make sure you’re taking advantage of every opportunity.
Many tax breaks, such as the Child Tax Credit and education benefits fade out gradually as income rises. Consider adjusting retirement contributions or timing when you receive certain payments to stay in the optimal range.
With the state and local tax (SALT) cap increasing to $40,000, you may benefit from itemizing again despite the higher standard deduction. Review charitable gifts and property taxes—you might be closer than you think.
Hold appreciated assets for at least one year and a day to qualify for lower long-term capital gains rates. Consider loss harvesting or staggered sales to reduce taxable gains.
If you’re self-employed or a small business owner, review your eligibility for the 20% Qualified Business Income deduction. Manage how and when income is reported to help preserve this valuable break.
Tax-deferred accounts like 401(k)s and IRAs still face taxes later. Depending on your expected retirement income, adding Roth contributions or converting during lower-income years can create more flexible tax options in the future.
Contact your advisor today to discuss which strategies fit your goals.
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