Tax PlanningSubmitted by Texas Legacy Wealth Management on April 3rd, 2017
April 18th is just around the corner and unless you filed for an extension, the deadline to file your taxes for the year is quickly approaching. Here are a few things to consider in order to try to maximize your tax benefits.
There are certain restrictions regarding the number of allowances you can claim which may affect the amount you withhold so be sure to check with you CPA before adjusting your withholdings for the year.
If you think you have underpaid your estimated taxes for the year, you might be able to adjust withholdings for the remaining months in order to try to avoid any penalties for underpayment. Similarly, if you believe you have overpaid your taxes for the year, you might be able to adjust withholding for the remaining portion.
Supplemental wages such as bonuses, prizes, severance pay, overtime pay and commissions, among others, may be subject to a flat withholding rate of 25%. If your normal withholding rate is different than this, be sure to factor the difference into your estimated tax calculations.
You can consider selling capital assets that will generate a capital loss in order to offset any short-term capital gains. As a taxpayer, you might be allowed to deduct up to $3,000 of net capital losses against ordinary income each year. Any losses in excess of these might be able to be carried forward to following years.
At TLWM we seek to help you make the most of your resources by trying to help you address a variety of financial needs. These include estate planning, tax planning, wealth transfer and preservation strategies, and asset management. This allows us to try to create a realistic, comprehensive financial plan that is catered to your specific needs and adaptable to your changing circumstances.
This information is not intended to be a substitute for specific individualized tax or legal advice. TLWM and/or its investment representatives do not provide tax advice. We suggest that you discuss your tax or legal issues with a qualified tax advisor and/or attorney.
Consult your financial professional before making any investment decision.
Investing involves risk including loss of principal.