Tax Planning

Guidelines for tax planning on the finish of the yr

Checklist for tax planning at the end of the year

You can use this checklist to ensure that you are working towards your financial goals and preparing for the tax season ahead. Keep in mind that most investment-related strategies for managing this year’s tax bill must be implemented by December 31, 2021 at the latest.

  1. review Share your portfolio with your financial advisor to ensure your asset allocation continues to align with your goals. Market activity may have required realignment of your portfolio by selling some assets and buying others to bring it back to your intended allocation.
  2. questions Contact your financial advisor for a Realized and Unrealized Gains / Losses report to assess the income and capital gains or losses you may receive this year.
  3. Determine whether the 0% capital gains rate applies to your situation. Add your long-term net capital gains and / or qualifying dividends to your other taxable income, after any deductions. If the total is $ 40,400 or less (single filings) or $ 80,800 or less (married / joint applicants), your long-term capital gains and / or qualifying dividends may be taxed at 0%. For amounts above these thresholds, the capital gains tax brackets of 15% and 20% apply.
  4. review tax loss selling strategies when you have realized capital gains. If you want to take a loss but maintain your exposure to the security, remember to avoid a wash sale of 30.
  5. To meet with your tax advisor to make preliminary tax projections and see whether income and expenses will be brought forward or deferred.
  6. Determine if adjustments to your tax withholding or your estimated tax payments are required.
  7. Do maximum contributions to your employer-sponsored retirement account, such as B. 401 (k) or 403 (b); If you are contributing to your IRA, the deadline is April 15, 2022.
  8. Develop a plan to complete donations to charities and family members by the end of the year.
  9. Consider Fund a Flexible Spending Account (FSA) and / or a Health Savings Account (HSA) during the annual registration period for your employer’s benefits, if you are eligible. Also check the FSA balances. Keep in mind that FSAs tend to operate on a “use-it-or-lose-it” principle, which means that after the end of the year you could lose any money left in the account.
  10. Prepare for filing tax returns by organizing records or receipts for income and expenses.

Wells Fargo Advisors does not provide legal or tax advice. If legal or tax assistance is required, the services of a competent professional should be sought.

Joseph G. DiGiacomo
Senior Vice President – Investment Officer

Wells Fargo Consultant | 131 Continental Drive, Suite 102, Christiana Executive Campus | Newark, DE 19713
Tel 302-266-2888 | Toll Free 800-355-2130 | Fax 302-731-7111 |

This article was written by and for Wells Fargo Advisors

Joseph G. DiGiacomo Senior Vice President 302-266-2888.

Investment and insurance products are:

  • Not insured by the FDIC or any federal agency
  • No deposit or other obligation by the bank or an affiliated bank
  • Subject to investment risks, including the possible loss of the amount of capital invested

Wells Fargo Advisors is a trading name used by Wells Fargo Clearing Services, LLC, a member of SIPC, a registered broker-dealer and non-bank subsidiary of Wells Fargo & Company.

© 2019-2021 Wells Fargo Clearing Services, LLC. All rights reserved.

CAR: 1121-03833

The CAR expires: May 25th, 2023

Related Articles