Tax planning is an activity that is best pursued year-round
- If you work for tips and earn more than $20 in tips during the month, report tips to your employer by the 10th of each month for the following month on form 4070.
- Complete Form W-4 and adjust withholding if needed.
- Pay fourth-quarter estimated tax voucher for the preceding tax year by January 15.
- Evaluate before-tax contributions to retirement plans.
- Evaluate voluntary after-tax contributions to retirement plans.
- Apply for a Social Security number for any child who does not have one.
- Make quarterly defined benefit Keogh contribution for preceding year by January 15.
- If you claimed exemption from withholding last year, you must file a new W-4 form with your employer to claim the exemption for this year.
- Comply with minimum distribution rules for qualified plans by April 1 if you attained age 70½ in previous year.
- File individual tax return (or an application for an extension of time to file) by April 15.
- Pay first-quarter estimated tax, using the correct voucher, by April 15.
- Make previous-year IRA contribution by April 15.
- Make previous-year Keogh plan contribution by April 15 (unless you applied for an extension of time to file your tax return).
- Make quarterly defined benefit Keogh contribution for the current year by April 15.
- Pay second-quarter estimated tax voucher by June 15.
- Make quarterly defined benefit Keogh contribution for the current year by July 15.
- File Form 5500 Annual Report of Employee Benefit Plan by July 31, if applicable.
- If you applied for an extension of time to file your preceding year’s tax return, file the return or an additional extension request by August 15.
- Pay third-quarter estimated tax voucher by September 15.
- If you got an extension of time to file later than August 15, you must file by October 15.
- Make your quarterly defined benefit Keogh contribution for the current year by October 15.
- Begin your year-end planning.
- Evaluate the applicability of the AMT and other taxes.
- Adjust withholding, if necessary.
- Evaluate year-end capital transactions.
- Establish a separate Keogh plan for self-employment income.
- Comply with minimum distribution rules for qualified plans.
Throughout The Year
- Evaluate your tax and financial strategy for receiving discretionary and mandatory retirement plan distributions.
- Reevaluate your uses of debt.
- Consider making gifts to children or other family members up to the annual gift tax exclusion of $12,000 per gift per donee per year.
- Evaluate passive loss exposure and potential investment shifts.
- If you have excess cash flow, consider how to invest those funds.
- Optimize mix of interest expense items.
- Consider making charitable contributions of property, instead of (or in addition to) giving cash.
- Consider ways to fund your children’s education.
- Evaluate your mix of portfolio and passive income.
- Review prior gifts to children under age 14 and their incomes in order to minimize the amount of income that will be taxed at your rate.
- Review the selection of your second residence and status of your vacation home.
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host
are not providing legal, accounting or specific advice to your situation.