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Insert Inside! •••••DECEMBER 15, 2021•••••
As 2021 winds down, it’s a good time to assess whether there are opportunities to trim this year’s tax bill. Waiting until you begin to work on your tax return in early 2022 will be too late to save in most cases. So, if you’re interested in potentially saving on taxes, you should plan now, before Take Steps to Save On 2021 comes to 2021 Income Taxes Before an end. Consider if any of the Year Runs Out these actions make sense for you. Manage your deductions Wondering if you should itemize your deductions? For 2021, the standard deduction for a single person is $12,550, and for a married couple filing a joint return is $25,100. If your deductible expenses1 (such as mortgage interest, state and local income or sales taxes and property taxes) don’t exceed that amount, claiming the standard deduction may be best for you. For many people, this can be a close call – you might itemize one year and claim the standard deduction the next. To the extent possible, you may consider consolidating deductible expenses in one year to itemize and then claiming the standard deduction in the future. Make timely investment decisions Buying and selling investment decisions shouldn’t be based on tax considerations alone. If you own mutual funds in taxable accounts, you may receive a capital gain dividend before year’s end, which will be (Financial cont’d on page 2)
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