Year-End Tax Strategies To Save On Taxes For 2021!
The end of the year is approaching fast, regardless of what new tax legislation that Congress passes, there are a few year-end tax strategies you may want to consider to increase your tax savings. For example, for investors, you may want to consider tax-loss harvesting which allows you to offset capital gains with losses, especially if you have more losing assets than winning assets. Next, charitable donations. With a $12,550 standard deduction for single filers ($25,100 for couples filing together) in 2021, it’s tougher to itemize and claim the write-off. But many combine multiple years of donations, known as “bunching,” to clear the standard deduction thresholds. Finally, Roth conversions would convert funds in pre-tax individual retirement accounts or 401(k) to an after-tax Roth IRA. Earnings from the Roth account grow tax-free after that.
Do you need proper tax planning to reduce your tax bills for 2021, please do not hesitate to call us at (832) 295-3353. You can also set up an appointment with us at https://xqcpa-bookme.acuityscheduling.com/schedule.php. Last but not least, please like and share our daily posts. #tax #taxplanning #401k #taxes