{"id":26462,"date":"2022-10-28T00:57:26","date_gmt":"2022-10-28T00:57:26","guid":{"rendered":"https:\/\/c1mdevsite.com\/braunability.com\/7-tax-planning-tips-for-the-end-of-the-year\/"},"modified":"2022-10-28T00:57:26","modified_gmt":"2022-10-28T00:57:26","slug":"7-tax-planning-tips-for-the-end-of-the-year","status":"publish","type":"post","link":"https:\/\/c1mdevsite.com\/mdctraining.ca\/7-tax-planning-tips-for-the-end-of-the-year\/","title":{"rendered":"7 Tax Planning Tips for the End of the Year\u202f\u202f"},"content":{"rendered":"
\"tax<\/p>\n

An unexpected tax bill can turn your world upside down. It is always best to be prepared and plan to avoid any unexpected issues in your financial plans. Moreover, there are some smart moves that you can take now to cut your tax bill come filing time. Between now and the end of the year, there is still time to reach out to professional tax accounting services<\/a> for help. Financial teams like Waters Hardy are tax experts who can manage your tax preparation needs to ensure optimal tax savings.<\/strong><\/span>\u00a0<\/strong><\/p>\n

Tax Savings Strategies to Consider Before the End of the Year<\/span><\/b>\u00a0<\/span><\/h2>\n

1. Make Necessary Changes to Your W-4<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span>The W-4 is the form<\/a> you give to your employer that indicates how much tax to withhold from each paycheck. Beginning in 2020, the IRS eliminated the past system of withholding \u201callowances.\u201d\u00a0 It allows employees to directly determine the specific amount they want to increase or decrease their federal tax withholdings. These changes to your W-4 can be made at any time and could prevent an unexpected tax bill.\u00a0<\/span>\u00a0<\/span><\/p>\n

If your tax bill last year was significantly more than anticipated, increase your withholdings, so you owe less when it\u2019s time to file your tax return. This also works the other way around. If you got a huge refund, do the opposite and reduce your withholding so you can live on more of your paycheck throughout the year.\u00a0<\/span>\u00a0<\/span><\/p>\n

2. Max Out Your Retirement Account Contributions<\/span><\/b>\u00a0<\/span><\/p>\n

Tax-advantaged retiremen<\/a>t accounts compound over time and are funded with pre-tax dollars, making them a great investment for the future. Since the contributions you make to these plans lower your taxable income, they\u2019re also helpful at tax time.<\/span>\u00a0<\/span><\/p>\n

401 (k) contributions must be made by December 31 of that calendar year. <\/span><\/p>\n

The maximum allowable contributions for the current tax year are:\u00a0\u00a0\u00a0<\/strong><\/p>\n