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2017 Year End Tax Planning

2017 Year End Tax Planning

November 21, 2017

With only a few weeks till the end of the year, it’s time to make sure you’re positioned to take advantage of all available credits and deductions to optimize your 2017 taxes.

Here is a list to help you get started:

  1. Maximize contributions to retirement accounts:
    • Check with your employer to make sure you’ve maxed out tax deductible contributions.
    • Contribute to your IRA
    • Consider a Roth conversion of your IRA if 2017 is a low income year.

  2. Check your IRA distributions:
    • If you are over 70 ½, consider making them charitable so your distribution won’t be reported as income.

  3. Make last minute charitable contributions to increase itemized deductions.

  4. Consider paying property taxes early to increase itemized deductions, which may not be available in the 2018 proposed tax plan.

  5. Contribute to 529 Plans by December 31 for Pennsylvania tax deduction:
    • You can contribute up to $14,000 per child per year.

  6. Check your flex spending account:
    • Check to see if your employer has adopted a grace period granted by the IRS, allowing employees to spend 2017 set-aside money as late as March 15, 2018. If not, make sure you use it.

  7. If you needed to make estimated payments, check to make sure you’ve paid in enough to avoid any penalties.

  8. Business owners may want to consider deferring income to 2018.
    • This will depend on projected tax situations.

  9. Review your investments:
    • If you have investments that lost value, consider selling them to reduce taxes on realized capital gains.

Call us to setup a meeting to review your personal tax situation. We can help you take advantage of all possible strategies and opportunities.