Tax Planning

Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2021.

Here are seven things to consider as you weigh potential tax moves before the end of the year.

The first part of 2020 was rocky, but there should be better days ahead. Taking a close look at your finances may give you the foundation you need to begin moving forward. Mid-year is an ideal time to do so, because the planning opportunities are potentially greater than if you waited until the end of the year.

Create a tax plan for 2020.

The new tax law which was enacted the beginning of 2018 affected the way many taxpayers file their taxes.  In some cases, the amount of federal tax that employers withheld was reduced.  In addition, the increased standard deduction has meant that fewer people are itemizing on their tax returns.  In light of these changes, it is important to know whether you and your household are withholding the correct amount of federal income taxes.

To help you with this, the IRS launched in August a new Tax Withholding Estimator which can be found on their website: