Year End Tax Planning
Whether or not you have a disability, these tips can help you get ready to discuss your tax situation.
Whether or not you have a disability, the following information is designed to make organizing your year-end taxes a little easier. While it’s not intended to be comprehensive, it can help you get ready to discuss your tax situation with your financial advisor and tax professional. Consider these issues:
Income and Taxes
Check which types of income you had in 2012. Different categories carry different tax rates.
— Short-term investment gains
— Long-term investment gains
— Social Security
— IRA withdrawals
— Other income: ————————
Consider whether you:
— Need to rebalance your asset allocation to align with your investment objectives
— Have concentrated equity positions that should be addressed before capital-gain taxes increase
— Could use tax-loss harvesting to offset gains
— Could use tax-gain harvesting to minimize potential increases in 2013 capital-gains taxes
— Can control 2012 income and deductions
— Will be subject to taxes on distributions from investments
— Could be subject to the alternative minimum tax (AMT)
— Have fully funded education savings accounts
Think about whether you:
— Are making out your retirement plan contributions and catch-up provisions, if eligible
— Should convert to a Roth IRA in tax year 2012
— Are using municipal bonds for federally tax-exempt income
— Need to take required minimum distributions from retirement accounts
— Retired in 2012
Can you make charitable contributions in 2012 ahead of scheduled changes in allowable deductions?
Can you accelerate future years’ gifts into 2012 to capitalize on current tax-law changes?
Do you have highly appreciated assets that could be incorporated into your charitable-giving strategy?
Can you fund your children or grandchildren’s college education with a tax-deferred plan?
Are you eligible for additional contributions to your retirement plan?
Can you control income and deductions?
Ask yourself if you:
— Should review estate-planning objectives, particularly given scheduled tax-law changes
— Should gift assets to reduce future estate taxes, particularly ahead of proposed tax and exemption changes
— Can make gifts to children or grandchildren to reduce your estate and the possible impact of proposed changes
— Should review estate-plan documents and adopt flexible language, given legislative changes
Documents You May Need
- Copies of your 2010 and 2011 income-tax returns
- W-2 from your employer
- Brokerage statements (1099-B) and any statements showing investment purchase/sale dates
- Dividend and interest statements (1099-DIV, 1099-INT, and 1099-OID)
- Social Security statement (1099-SSA) and/or retirement distributions (1099-R), if applicable
- Statements reporting profits from partnerships, trusts and small businesses (K-1)
- Mortgage interest statements (1098)
- Student loan interest statements (1098-E)
You also should have receipts or proof of charitable gifts, moving expenses, medical/dental expenses, daycare/childcare costs, and education expenses.
Tax regulations are complex and ever-changing. Be sure to consult with your financial advisor and tax professional for advice on your individual situation.
Contact: Daniel C. Jones, firstname.lastname@example.org / 215-881-2712 / 887-3281 (fax) / 866-760-3544 / raymondjames.com/DanJones.
Year End Tax Planning
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