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There are many actions to complete before December 31st in order to get the tax benefit this year. At Wealthstream Advisors, we collaborate with your accountant and help guide you. This checklist asks some key questions to consider. While you may not have all of the answers, contact us. We can help you complete this and more importantly help you understand what to do next.

Tax Projections

Review prior year return and consider what has changed for current year.

Questions:

Do I expect my marginal tax rate to go up next year? 

 Yes No
  • If yes, is there some income that I could accelerate to current year?
 Yes No

Will I be taking the standard deduction rather than itemizing?

 Yes No
  • If yes, should I defer certain deductions i.e. wait to make gifts to charity until next year?
 Yes No
 

Retirement Plan

You may wish to establish and fund a retirement plan with your company before 12/31. Note that both Traditional and Roth IRAs can be established and funded by April 15th of the following year.

Questions:

If my intention is to maximize contributions, including catch-ups, have I done this? 

 Yes No

Did I take Required Minimum Distributions (RMDs) (View Here)

 Yes No

Roth Conversion

Consider converting a portion of tax-deferred dollars from Traditional IRA to dollars that grow tax-free in a Roth IRA.

Questions:

Do I think I might be in a higher tax bracket at retirement than I am now? 

 Yes No
  • If yes, have I evaluated doing a Roth conversion and has it been completed?
 Yes No

Charitable Giving

Multiple ways to give to charities with some being more tax-efficient than others.

Questions:

Should I add to/open a Donor Advised Fund (DAF)? (View Here)

Yes

No

Can/should I make Qualified Charitable Deductions (QCDs)? (View Here)

Yes

No

Investment Portfolio

Manage the recognition of capital gains and losses.

Questions:

Are there unrealized losses in my portfolio that I wish to take this year? (View Here)

Yes

No

Tax Residency

NY Domicile and Residency issues in the COVID-19 Era.

Questions:

Did I change my domicile this year?

Yes

No

Did I spend more than 183 days in another state? If yes to either, am I aware of potential tax opportunities and traps?

Yes

No

Tax rates and underlying tax laws are constantly changing. Even so, there are benefits that can be achieved with sound planning. While this checklist focuses on year-end planning, it is better to attend to many of these items throughout the year. For example, we look to harvest tax losses as the opportunities present themselves. Similarly, it is best to do Roth conversions as well as estate gifting at a time when asset values are depressed.

Please reach out to a Wealthstream advisor if you have any questions on how we can help with your specific situation.