Still Time to Reduce any Tax Surprises!

Author

Senior Tax Advisory Group

Posted on

Oct 24, 2022

Book/Edition

Colorado - Colorado Springs

Consider conducting a final tax planning review now to see if you can still take actions to minimize your taxes this year. Here are some ideas to get you started.

  • Time to Launch Your Tax Strategy imageReview your income. Begin by determining how your income this year will compare to last year. Since tax rates are the same, this is a good initial indicator of your potential tax obligation. However, if your income is rising, more of your income could be subject to a higher tax rate. This higher income could also trigger phaseouts that will prevent you from taking advantage of certain deductions or tax credits formerly available to you.
  • Examine life changes. Review any key events over the past year that may have potential tax implications. Here are some common examples:
    • Purchasing or selling a home
    • Refinancing or adding a new mortgage
    • Getting married or divorced
    • Incurring large medical expenses
    • Changing jobs
    • Welcoming a baby
  • Identify what tax changes may impact you. Some of the major changes this year include the lowering of the child tax credit and the lowering of dependent care credit for working couples. This year also marks the first year in the last two with no pandemic related payments. If you think this could impact your situation it may make sense to conduct a tax planning review.
  • Manage your retirement. One of the best ways to reduce your taxable income is to use tax beneficial retirement programs. So now is a good time to review your retirement account funding options. If you are not taking full advantage of the accounts available to you, there is still time to make adjustments.
  • Look into credits. There are a variety of tax credits available to most taxpayers. Spend some time reviewing the most common ones to ensure your tax plan takes advantage of them. Here are some worth reviewing:
    • Child Tax Credit
    • Earned Income Tax Credit
    • Premium Tax Credit
    • Adoption Credit
    • Elderly and Disabled Credit
    • Educational Credits (Lifetime Learning Credit and American Opportunity Tax Credit)
  • Avoid surprises. Your goal right now is to try and avoid any unwanted surprises when you file your tax return. It's also better to identify the need for a review now versus at the end of the year when time is running out. And remember, you are not required to be a tax expert. Use the tips here to determine if a review of your situation is warranted.

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Senior Tax Advisory Group, Inc. is a national firm devoted to assisting retirees aged 50 and over in protecting their assets, reducing their tax bills, and ensuring that their money lasts while still committing to paying the least amount possible to the IRS.The benefits of working with the Senior Tax Advisory Group can be seen from a financial standpoint as well as in service and retention, and in overall customer satisfaction. Over the years our clients have enjoyed steady returns and safety in their portfolio. Not only do our clients see us 3-4 times per year, per account, but we also provide them with peace of mind and a one- of- a- kind service that can't be found elsewhere! Our simple to understand concepts and strategies makes us proud to serve any friends or family they refer to us as well.

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