It’s easy to ignore finances during the holiday season. But with five weeks left in 2021, there’s still time for year-end moves to slash tax bills or boost refunds, experts say.
While tax planning is a year-round process, the last couple of months may offer the chance to finalize plans or pivot to better strategies, said certified financial planner Bryan Hasling, partner at Lodestar Private Asset Management in Alamo, California.
Here are some options to consider as the calendar winds down.
Adjust withholdings
Those worried about owing money may still change how much their employer holds back from their last few paychecks.
Filers may use the IRS Tax Withholding Estimator and provide their company with an updated Form W-4 with changes. Of course, a tax professional may provide the most accurate projection.
Boost 401(k) contributions
Employees may also use remaining paychecks to boost pre-tax 401(k) or 403(b) deferrals, which lowers adjusted gross income.
The employee contribution limit is $19,500 for 2021, with an extra $6,500 for investors age 50 and older.
Read more at CNBC
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