How To Get Ahead of The 2019 Tax Year – Part II

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How To Get Ahead of The 2019 Tax Year Part II
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• There are many ways in which you can try and get
  yourself organized before the 2019 tax year
  commences, and here are just a few of them
• Try to contribute more towards your 401(k)
• Reducing your tax bill is made easier if you
  contribute the maximum amount to your 401(k). If
  youre younger than 50, youre permitted to
  contribute a maximum of 18,000 to the retirement
  plan, while those who fall into the older
  categories, can contribute up to 24,500. Next
  year, in 2019, those individuals younger than 50
  will be able to contribute up to 19,000, while
  those who are aged 50 and above, will be
  permitted to contribute 25,000.

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• Experts also tell us that if we dont contribute
  enough towards our 401(k) plans, then were in
  effect, turning down free money that a company
  would otherwise match.
• Take a closer look at your investments
• Reviewing your investment portfolio is a smart
  move, and if you have any recognized gains for
  the year, then you might want to consider selling
  securities with losses to offset these gains plus
  3,000 of ordinary income. This is a tried and
  tested strategy commonly known as tax loss
  harvesting. If its within 30 days of the loss
  having been generated, then as a taxpayer, you
  cannot replace securities sold at a loss, you
  must wait until that period is over, otherwise
  the loss will be disallowed.

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• Look over your retirement accounts
• Try to take only the amount that you need from
  your retirement plans to best minimize the amount
  that you owe, and therefor keep your tax bracket
  as low as you can. But be mindful of taking out
  too little if youre 70 and a half or older,
  then you should review the minimum distribution
  requirements to help you avoid the 50 tax
  penalty that youll incur should you fail to take
  out the required amount from any accounts
  requiring an RMD (required minimum distribution).

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• Not all retirement accounts require an RMD, and
  for more detailed information and guidance on
  making the most of your retirement plan for the
  new tax year, please make an appointment to speak
  with a tax professional at the earliest.
• Dont leave your paperwork until the last minute
• While some tax forms may arrive as late as Jan
  31st, 2019, such as the 1098-T form from
  educational institutions if youve paid for any
  college or school expenses this year that may
  award you some credits (such as the life learning
  credit, which helps minimize the costs of
  post-secondary education and the child and
  dependent care credits), the W-2, 1099 or
  whichever form you may be waiting for, that
  doesnt stop you from getting your records up to
  date in the meantime.

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• Be prepared so that when the form does arrive,
  you simply need to fill it out and return it.
• For all your last-minute tax queries and doubts,
  dont waste any time reaching out to a tax
  professional to make sure that when 2019 rolls
  in, youre not left behind panicking about your
  return. Always be prepared, and even if youre
  using a tax professional to plan and prepare your
  taxes, the more organised you can be, the better
  they will be able to work.

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• At Heyer Associates, we proactively assist our
  individual and small business clients in meeting
  their goals. Our key area of focus is ensuring
  that our clients remain compliant with federal
  and state tax laws by providing them with high
  quality accounting and tax service Coral Gables.
  If you are looking for individual tax preparation
  in Miami , Heyer Associates would be a right
  option.