Tax Planning For Retirement Plans
One of top ways to reduce your tax liability is to save via a retirement plan. Contributing to a 401(k) plan through your employer or a traditional IRA can help reduce adjusted gross income (AGI) – and thus, lessen your taxes. Plus, when you contribute to a 401(k), you defer income from your paycheck directly into your plan, which can significantly reduce your adjusted gross income (AGI).
Another way to reduce your taxes, tax-loss harvesting lets you use your investment portfolio’s losses to offset capital gains liability. More times than not, you may be advised to sell securities at a loss to cancel out short-term capital gains. For many investors, tax-loss harvesting helps reduce taxes, and in turn, can help reduce the severity of the loss.
Tax Deductions And Credits
Tax planning for next year’s federal and state income taxes also involves looking at tax deductions and tax credits. Depending on your personal situation, you may also be able to claim certain credits, like the Child Tax Credit, Adoption Tax Credit, American Opportunity Tax Credit, Earned Income Tax Credit and more.
Tax Planning Services
Get ahead of your tax return this year with tax planning services from HighPoint Advisors, LLC. Schedule an appointment with one of our financial advisors today to get started.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.