Here is a list of reminders for good tax health as we finish up 2024

- Take your Required Minimum Distributions (RMD) If you have reached age 73, you must take a RMD from your tax deferred retirement account to avoid any sort of IRS penalty. If you have inherited an IRA be sure to take your RMD associated with that inheritance.

- Gift tax limit for 2024 is $18,000 if giving some of your wealth to individuals is part of your giving plan.

- Standard deduction for couples is $29,200 and $14,600 for single filers. If you believe you will have mortgage interest, state and local taxes (capped at $10,000) and charitable donations that total more than those amounts, be sure to make your donations by 12/31 to 501(c)3 charitable organization.

- Another gifting strategy -  Consider donating highly appreciated long-term assets (e.g. stocks). By giving appreciated assets held for longer than one year and a day to a public charity, you can potentially take a deduction for the full fair market value of that asset and not have to take that gain into your taxable income.

- If you are self employed, be sure to send in your Quarter 4 tax estimates by Jan. 15. You can make those estimated payments online at IRS.gov/payments for Federal and MyPath.PA.gov for PA payments. If you have not sent in anything yet but know your business was profitable, send in something in January.

- If you started a new job this year, or your Company switched Payroll provider check your paystub to ensure you had sufficient Federal withholding. For most taxpayers that would be at least 10% of your Federal taxable wages. If drastically lower than you were expecting give me a call.

- Still time to contribute to a 529 Plan for a child or grandchild. 529 plans are great way to save for college as investment growth is tax free.  There is a small PA state tax deduction or your contribution. Speak to your financial advisor or visit your online brokerage.

- IRA limit is $7,000. $8,000 if you 50 plus. Review your IRA contributions to make sure you are maximizing if cash flow allows. If you are employed, review your 401k contributions to ensure to you are at the level you planned to achieve.

- If you are self employed, if you have had good year, review if you wish to fund a SEP IRA. Or if there is a capital asset you have your eyes on make the purchase by 12/31.

- Also, if self employed and you have formed a LLC, be sure to address the email I sent about Beneficial Ownership Information report for FinCen. Due by 12/31. Call me with questions.

- A time honored tax habit if you know you are facing some capital gains on investment activity now is the time to decide to sell any losers in your portfolio. Double check this strategy with your financial advisor.

- Have you sold a rental property, be sure to speak to me soon about the results. The sale of a rental usually produces capital gains plus you face depreciation recapture so important to retain some of the sale proceeds to address the tax hit.

- If you son or daughter is away at college, under the age of 24 and you plan to claim them and the college tax credits that come along with that, be sure they understand that they should select the "I can be claimed by someone else" box when they fire away their Turbo Tax filing on their phone.

- Are you a online gambler. Be sure you know where you stand with wins and losses. Be sure to know how to get year end statement on your activity listing your wins and losses. Collect any W-2G (where your win was $600 or more).

- Are you a Crypto investor. Be sure to have plan to calculate your gains and losses on your Crypto investments. Many brokerages are offering reporting on these transactions. 

- If you have a HSA eligible health plan, review if a Health Savings Account is right for you. If so, you have until 4/15 to fund it. It gives you a tax deduction plus it grows tax free in investment account. 

- Remember the use or lose it rules of Flexible Savings Accounts (FSA) at your workplace.  Find health care expenses to use the fund by the Company deadline. 

- Review that you have the beneficiaries set in accordance with your current preferences. For your retirements accounts (401k, IRA) its vital you have a beneficiary set.

- Election impact .Electric car credits may face chopping block with new administration. If you considered buying an electric vehicle, this would be the month to do it in order to claim EV credit. There is high likelihood that the 2017 lower tax rates set to expire in 2025 will be extended with a Republican congress and control of White House including the important Qualified Business Income deduction for self employed folks.

Photo from my trip to Yellowstone National Park. I must see I would say. 

If you have any questions on items listed here give me a call at 717-346-0050. I hope you and your family have a restful and joyous Christmas season. 

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