2017 Tax Planning for Individuals

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2017 Tax Planning for Individuals

As year-end approaches, it is a good time to think of planning moves that may help lower your tax bill this year.

We have compiled a list of items that may be helpful if taken into account before the end of 2017.  Of course, not all alternatives will apply to your particular situation; therefore, we ask that you please review the following list and contact us to discuss the benefit and/or your eligibility before taking any action. You can also see our short list of year-end moves to consider in anticipation of 2018 tax reform.

Year-end planning is a bigger challenge this year than in past years. Major tax reform proposals are being debated by our legislators. Although it is unlikely that tax reform will affect the 2017 tax year, changes could be enacted for the 2018 tax year.  Potential tax reform may affect your 2018 income tax liability and thus your 2017 planning.  Please note that we will be providing you with a detailed summary of the changes caused by the major tax reform if/when it is enacted.

Below is a list of 2017 tax planning items for your consideration:

  • Life events such as marriage or being affected by a natural disaster can have a significant impact on your taxes.
  • Check the balance on your flexible spending account (FSA)
  • Contribute to a Health Savings Account (HSA)
  • Consider acceleration of contributions to employer pre-tax retirement accounts
  • Consider Roth IRA conversions of traditional IRA funds
  • Review required minimum distributions from retirement accounts
  • Increase your withholding if you are facing a penalty for underpayment of estimated tax
  • Understand the timing of year-end deductions
  • Consider the option to contribute to charities directly from IRAs
  • Consider eligible tax credits for energy saving improvements to your home
  • Consider ways to reduce your exposure to the 3.8% net investment income tax (NIIT).

Please visit our website for a summary of the above noted items as well as additional items that might be affected by major tax reform for 2018.  You should examine these as well as other tax planning options thoroughly before initiating action.  We are happy to discuss these with you and tailor a tax saving plan that will work best for you.