Tax Planning Strategies
Almost every financial action may have tax consequences.
Developing and implementing appropriate strategies should be driven by your overall financial goals and integrated with your total financial plan - tactics will depend on your income as well as a number of other personal circumstances. Our wealth advisors review your annual tax return, calculate cost-basis, offer recommendations on tax advantage investments, and stay current on the ever-changing tax environment to help you maximize tax reduction opportunities.
Recent uncertainties make it more important than ever to minimize your tax liability and ensure that all five areas of your financial plan are in sync.
Kickstart your tax season planning with this list of important deadlines, documents you may need, and strategy considerations.
Some of the proposed changes that the future could bring (any changes would need to be approved by Congress).
Understand how various investments are taxed, such as interest income, capital gains, dividends, and retirement income. Even something as seemingly simple as investment income has subcategories, each taxed differently from the next.
Help improve your bottom line with these tax mitigation strategies.
Guidelines to help you determine if you've chosen the right accountant, and signs that suggest you proceed with caution.
Information about exporting tax data from your Raymond James brokerage accounts
Review the latest Social Security changes and see if your Social Security income is taxable.
REPORT A QUALIFIED CHARITABLE DISTRIBUTION (QCD) ON YOUR INCOME TAX RETURN
If you are age 70 ½ and older you can make a Qualified Charitable Distribution (QCD) in the form of a direct transfer of up to $100,000 directly from your IRA to a charity, including all or part of your required minimum distribution (RMD). In order to qualify for tax tear 2020, the funds must have come out of your IRA by December 31, 2020.
Be sure to take the QCD amount off of your 1099, or you could end up paying more in taxes.
To report a qualified charitable distribution on your Form 1040 tax return, you generally report the full amount of the charitable distribution on the line for IRA distributions. On the line for the taxable amount, enter zero if the full amount was a qualified charitable distribution. Enter "QCD" next to this line. See the Form 1040 instructions for additional information.
You must also file Form 8606, Nondeductible IRAs, if:
You made the qualified charitable distribution (QCD) from a traditional IRA in which you had basis and received a distribution from the IRA during the same year, other than the qualified charitable distribution; or
The qualified charitable distribution (QCD) was made from a Roth IRA.
Please note: Tax rates are for the 2020 tax year and will be updated to the 2021 rates after April 15, 2021.
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This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.
Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.