Remember, it’s not only what you make but what you keep!
Filing your taxes this coming year could be complicated. Maybe you stopped working, realized investment gains, created an estate plan, or went from itemizing to claiming the standard deduction or vice versa. There are many factors that can impact whether your taxes will increase and whether you need to rethink your tax strategy.
Another important aspect of tax planning is understanding required minimum distributions (RMDs). RMDs are the minimum amount that you must withdraw from your retirement accounts each year once you reach a certain age. As of the final days of 2022, RMDs will begin at the age of 73 for each person. RMDs are subject to federal income tax, and it’s important to plan for them in order to avoid paying more tax than you need to, as well as the penalty fee for not withdrawing from your retirement accounts by the deadlines specified by the IRS.
One way to minimize the impact of RMDs on your tax bill is by making qualified charitable distributions (QCDs). QCDs are tax-free withdrawals from your IRA that you can use to make charitable donations. By making QCDs, you can reduce your taxable income and potentially lower your tax bill.
In addition to RMDs and QCDs, there are many other strategies for minimizing your tax bill. These can include things like contributing to a tax-deferred retirement account, claiming tax deductions and credits, and investing in tax-efficient assets. We’ll work with you to understand your financial situation and to develop a tax strategy that helps you save on your taxes.
At Goldstone Financial Group, our team of financial professionals has the knowledge and experience to help you navigate the complexities of the tax code. We’ll work with you to understand your tax bracket, your taxable income, and the deductions and credits that are available to you. We’ll help you understand the tax implications of your investments and to develop a tax strategy that helps you save on your taxes.
Whether you’re preparing for the upcoming tax year or looking for ways to minimize your tax bill, we can help. We offer a range of tax planning services, including tax strategy and planning, tax return preparation, and tax accounting. We’ll work with you to create a customized tax plan that helps you achieve your financial goals.
If you’re ready to take control of your taxes, we encourage you to contact Goldstone Financial Group today. Our team is here to help you understand the tax code and to develop a plan that helps you save on your taxes.