5 Year-End Tax Essentials

2022 Year-End Tax deadlines

Before 2022 comes to a close, take some time to review these essential year-end items to ensure you are not missing something that could cause tax trouble when you file your tax return:

Year-End Tax Tips

  1. Take required minimum distributions (RMDs). If you are 72 or older, you must take RMDs from certain retirement accounts before December 31 to avoid a 50% penalty! This includes most IRAs (except Roth IRAs) and 401(k)s. Your annual RMD is calculated by dividing the prior December 31 balance by the life expectancy factor provided by IRS tables.
  2. Watch for your Identity Protection PIN from the IRS. If you are a victim of tax-related identity theft, the IRS will mail you a one-time use identity protection personal identification number (IP PIN) as added security. The IRS mails IP PINs between mid-December and early January, so look for your IP PIN during this time period.
  3. Contribute to retirement accounts. Making contributions to tax-advantaged retirement accounts is a great way to lower your tax liability. For example, a traditional IRA or 401(k). That is, even if you don’t plan to itemize your deductions!
  4. Harvest gains and losses. If you expect capital gains from your investments, then selling stocks in a loss position to offset the gains will lower your tax liability. In fact, you can claim excess losses of up to $3,000 to decrease your ordinary income, such as wages from your job! Timing matters with investment sales and income taxes, so having a year-end strategy can help lower your tax bill.
  5. Make last-minute tax moves. Here are a few ideas worth considering:

Filing Your Tax Return

Understanding your current situation and having a plan will help maximize your year-end tax savings. Contact our RRBB accountants and advisors today for more information. We can help you determine the best next step for you.


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