What’s The Best Present You Can Give Yourself This Holiday Season?
Getting your taxes in order before tax season!
How do You Prepare For Tax Season?
The first step is figuring out if you want to take the standard deduction or itemize. More and more taxpayers are taking the standard deduction due to its increase from the TCJA.
Secondly, it may be time for you to do some tax planning, like converting individual retirement accounts to Roth IRAs. Roth IRAs are good for paying taxes today if you think your rates will go up in the future. Additionally, Roth IRAs are not subject to Required Minimum Distributions. This means you do not have to withdrawal a minimum amount of money from your IRA and pay income tax on it after or before reaching the age of 70.5 years old. Lastly, the deadline for converting to a Roth IRA is December 31st.
After Giving Tuesday, you may want to take advantage of the charitable giving deduction. Taxpayers can only use the deduction if they are itemizing.
To sum it up, if you need help wrapping up your end of year taxes, seek out the help of a trustworthy professional to help you this coming tax season.
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