I know that this year has posed challenges for many of our clients. For me, Spring 2019 represented the hardest tax filing season in my career.  All of the changes resulting from the 2017 TCJA were in full effect, and client’s tax results were a bit all over the place. However, this is the time of year to focus on family, friends and everything else in life that brings us joy. I hope everyone gets the opportunity for that this holiday season.

As we look towards the 2020 tax season, we are fortunate that there are no major tax changes for the 2019 tax year. This will hopefully translate into a smoother season with less client surprises.

However, clients don’t need to wait to find out if they are in for a surprise tax bill.  If you owed a bunch of money last April or experienced a material change in your tax situation this year, please reach out to our office to help you estimate your liability.  Once that estimate is made, we can advise on any potential planning opportunities.

Alternatively, the IRS has put together a tax withholding estimator here: Tax Withholding Estimator.

Let us know if you want us to help you with a 2019 tax projection. We’re always here to serve as a guide and a resource.

A few other items to make sure you have considered or acted on:

If you are over 70 1/2 years old, be sure to take your Required Minimum Distribution (RMD) by December 31.
Maximize any 401(k) or 403(b) contributions by December 31.  IRA contributions can be made through the due date of the return, but not 401(k) contributions.
If you are gifting to family members, the annual exclusion amount is $15,000 for 2019.  In order to take advantage of this exclusion, gifts must be made by December 31.

Please reach out if you have any questions about these tax strategies. A very happy holiday season to you and your families!