Tax Planning is a strategy that ensures that you have no problems when you file your income tax returns. Utilizing all opportunities to organize your tax priorities will minimize problems and increase the size of your refund. A good tax plan consists of estimating and projecting your income tax returns prior to the end of the year. There are several ways to reduce your income tax liability through tax planning, and DJ's Tax Service will be happy to discuss them with you. The average time needed to project an estimated income tax return is only a few hours. Planning a tax strategy is good for..
Planning for retirement starts with the basics. Just thinking about your retirement goals and how long you have to meet them is a good start. DJ's Tax Service will guide you into the next step of looking at the types of retirement accounts that can help you to fund your future.
If you've received tax deductions over the years for money you've contributed to your retirement accounts, you'll pay a large tax bill when you start withdrawing those savings. Let DJ's Tax Service help you to minimize the retirement tax hit while you save for the future.
Traditional IRA - A traditional IRA is a way to save for retirement that gives you tax advantages. Contributions you make to a traditional IRA may be fully or partially deductible, depending on your circumstances. Contributing money to a traditional IRA can minimize gross income up to $6,500. As of 2018, a filer under age 50 receives a reduction of $6,000 and a reduction of $7,000 if age 50 or older.
401(k) Plans - The advantage of a 401(k) is that the contribution limit dollar amount is much higher than that of an IRA. 401(k) plans are group plans that are popular with larger companies that have many employees. Participants in the plan can defer income from their paycheck directly into the company's 401(k) plan.
Tax rules can be complicated, but taking some time to know and use them for your benefit can change how much you owe or get back. Tax planning involves analyzing and prioritizing your financial situation in order to maximize tax breaks and minimize liabilities. Here are some tax planning tips and strategies that will help you to better understand Tax planning.
Tax Gain-Loss Harvesting
Tax-loss harvesting is a strategy that involves taking a loss on one investment in order to offset gains on the sale of another. The idea is to use those losses to offset capital gains on winning investment positions and reduce capital gains taxes.
If you like the idea of tax-loss harvesting, be sure that tax savings do not weaken your investing goals. DJ's will create a balanced strategy that will ensure that your investments are in line with your objectives. If you're interested in implementing a tax-loss harvesting strategy but don't have the skill to do it yourself, our advisors may be able to help.
DJ's Tax Service will help you to minimize the retirement tax hit while you save for the future.