Today’s Smart Money Question:
(Click the featured times below to jump forward in the episode)
Here Are Just A Handful Of Things You’ll Learn:
As we’re coming to the end of this year, you should finalize some year-end planning opportunities.
If you are still working, look to maximize contributions in your 401k or 403b. It will allow you to reduce your taxable income. Also, take advantage of Roth options and traditional IRA.
You should also look at possible deductions on Schedule A for taxes. When we were going over this with some clients, they mentioned they needed some dental work done in 2021 and asked whether they should get it done in 2020.
They had a lot of medical bills, charitable giving and other items, so they would be way over the standard deduction and could itemize it for this year.
Another thing to look at is potential tax credits. For example, buying an electric vehicle, solar panels, childcare credits, etc. Be talking with your accountant about this.
“In most cases, the tax credit is going to be much more beneficial for you than just taking a deduction. Be talking with your tax advisor about that,” said Matt.
Don’t forget about the CARES Act, which was introduced to provide relieve during the pandemic and included a number of planning items. We discussed it in detail on a previous podcast, which you can listen to here.
Let’s also talk about first-time homebuyers. You want to be talking to a mortgage lender that has mortgage programs beyond just what their company is offering. You want someone who has many different options available to them based on what your needs will be.
There has been so much happening in the real estate industry. A mortgage expert said he could still see rates as they are now through the end of 2022. If you want
Listen to the entire episode or click on the timestamps below to jump to a specific section.
2:53 – Maximize 401k
4:55 – CARES Act
6:35 – RMD charitable contribution
9:04 – Deductions on Schedule A
11:25 – Pull money out of the IRA?
13:25 – Tax credits
16:26 – First-time homebuyers
17:58 – Find a good Realtor
“In most cases, the tax credit is going to be much more beneficial for you than just taking a deduction. Be talking with your tax advisor about that.”
-Matt Hausman
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