Start Tax Planning NOW!
Renee Daggett • June 9, 2022
Keeping your taxes as low as possible requires paying attention to your financial situation throughout the year.
. Here are some tips for getting a head start on tax planning for your 2022 return:
- Check your paycheck withholdings.
Now is a good time to check your tax withholdings to make sure you haven’t been paying too much or too little. The IRS has an online tool that will help you calculate how much your current withholdings match what your final tax bill will be. Visit
https://apps.irs.gov/app/tax-withholding-estimator.
Action step: To change how much is withheld from your paycheck in taxes, fill out a new Form W-4 and give it to your employer.
- Defer earnings. You could potentially cut your tax liability by deferring your 2022 income to a future year via contributions to a retirement account. For 2022, the 401(k) contribution limit is $20,500 ($27,000 if 50 or older); $6,000 for both a traditional and Roth IRA ($7,000 if 50 and older); or $14,000 for a SIMPLE IRA ($17,000 if 50 and older).
Action step: Consider an automatic transfer from either your paycheck or checking account to your retirement account so you won’t have to think about manually making a transfer each month.
- Plan withdrawals from retirement accounts to be tax efficient.
Your retirement accounts could span multiple account types, such as traditional retirement accounts, Roth accounts, and taxable accounts like brokerage or savings accounts. Because of this you should plan for your withdrawals to be as tax efficient as possible.
Action step: One way to structure withdrawals is to pull from taxable accounts first, and leave Roth account withdrawals for last. Another approach would be to structure proportional withdrawals from all retirement accounts that would lead to a more predictable tax bill each year.
- Net capital gains with capital losses.
If you have appreciated investments you’re thinking about selling, take a look through the rest of your portfolio to see if you have other assets that you could sell for a loss and use to offset your gains. Using the tax strategy of tax-loss harvesting, you may be able to take advantage of stocks that have underperformed.
Action step: Make an appointment with your investment advisor to look over your portfolio to see if there are any securities you may want to sell by the end of 2022.
Tax planning can potentially result in a lower bill from the IRS if you start taking action now.
Please call if you have questions about your tax situation for 2022.
Tax season may be done, but your work isn’t. Learn five practical steps business owners should take after filing to avoid surprises and stay ahead all year.
Organize your finances before tax season ends! Gather documents, maximize deductions, and streamline bookkeeping to reduce stress and save money.
Stop leaving money on the table. Discover essential tax deductions, business credits, and smart accounting strategies to keep more of your hard-earned cash. Plan ahead and maximize your savings this tax season.
March Madness isn’t just for basketball—your finances need a winning strategy too! Learn how cash flow management, tax planning, and financial tracking can keep your business from a costly upset. Read more for expert tips!
The BOI reporting deadline has been extended to March 21, 2025, but more changes may be coming. Stay informed on the latest updates, compliance requirements, and what your business needs to do now. Read more on AdminBooks.
Protect your QuickBooks Online account from fraud by enabling multi-factor authentication (MFA). Follow our step-by-step guide to secure your financial data today.
The Supreme Court has ruled to reinstate BOI Reporting.
The recent wildfires in Los Angeles County have devastated communities, leaving thousands dealing with property loss, displacement, and financial uncertainty. In response, both the IRS and the State of California have granted tax deadline extensions and financial relief to help individuals and businesses recover.
The new year is here, and with it comes an important deadline for business owners: January 31, 2025. If you’ve paid independent contractors, service providers, or freelancers $600 or more in 2024, you may need to file a 1099 form for them. With the deadline just weeks away, now is the time to get organized. Filing your 1099s on time not only avoids penalties but also keeps your business in good standing.
The requirements for filing Beneficial Ownership Information (BOI) reports under the Corporate Transparency Act (CTA) have shifted yet again. As of December 26, 2024, BOI filing is not currently required, following an order from the Fifth Circuit Court of Appeals that restored an injunction against enforcing the CTA. However, this situation remains fluid and could change on short notice.
