If you want to make the most out of your returns for the upcoming tax season, you’ll want to act now while there’s still a chance to curb the situation more in your favor. But what could you possibly do with just a couple more months left in the year? Learn more about end-of-year tax actions to take before consulting the professionals at A. Roberts & Associates!
Before the end of the year, it’s crucial to review your current tax situation, learn about upcoming changes for the 2023 tax year, and discover your options with your investment portfolio and retirement contributions.
Review All Of Your Data: Where Are You At Now?
It’s easy to lose track of time and everything that may have happened in the past few months. Now is your time to reconvene and find out where you’re at tax-wise and if you’ve been keeping in line with your financial goals. You don’t want to leave things up to chance and encounter unpleasant surprises while you’re already in the middle of filing your taxes. Ask your trusted tax advisor for the following:
- Tax summaries
- Year-to-date records
- Gain/loss reports
Getting the full scope on anything that can affect your taxes is the first step in taking action before the tax year ends. After reviewing your personal situation, the next step is to update yourself on any changes for the 2023 tax year.
Educate Yourself On Upcoming Changes In Taxes
Just because things played out a certain way last year doesn’t mean the same will happen again this year. Tax rules are always changing, and 2023 will be no exception. Learning about these new changes is crucial in properly preparing for what’s to come, what to expect, and what to do about it. Here are a couple of examples:
| Social Security taxes will be 6.2% | Medicare taxes will be 1.45% |
Manipulating Your Taxes: Where To Put Your Money Before The Year’s End
Other than reviewing data and information, what are some more concrete actions that you can take to influence your tax returns? You’ll need to decide on the best course of action for your current investments and your retirement contributions. Sometimes, it’s necessary to carry out some proven strategies like harvesting tax losses, maxing out contributions, or converting to a Roth IRA.
Harvesting Tax Losses
As you may already know, making a substantial profit on selling stock is often followed by a hefty fee in taxes. In order to counteract those fees, investors will often sell other stocks at a loss to make up for the taxes on their gains.
Converting To A Roth IRA
If you’re considering converting your retirement funds over to a Roth IRA to set yourself up for tax advantages or tax-free distributions, then now is the time to get started. This can result in a big change, so ask your financial advisor for help if necessary.
Maxing Out Your Retirement Contributions
There is a limit to how much you can contribute to your retirement funds for each year, so you’ll want to get your contributions in now before the reset. This is the best way to ensure that you’re putting down as much as you possibly can for increased growth over time.
Read more > Our Top 5 Tips For Rebalancing Your Retirement Accounts
| Don’t Forget To Meet Your Contribution Requirements! If you have a retirement account, don’t forget to meet the minimum requirement for making contributions so you can avoid any possible penalties. |
Check In With Your Local Financial Advisors At A. Roberts & Associates!
Schedule a consultation with your trusted financial advisors at A. Roberts & Associates to make sure you’re on top of everything by the end of the tax year. We’ll help you evaluate every detail and suggest any actions that you can take to help your case!