Tax strategy scan

Strategies include utilizing charitable trusts to split benefits between multiple beneficiaries and taking advantage of donor-advised funds.

By making the right moves, retirees can reduce their taxable income and owe less in capital gains taxes, an expert says.

Though IRA conversions during a market correction may enable some clients to save on their taxes, the strategy is not recommended for everyone.

The rule change is designed to have an impact in the fight against COVID-19 and applies only to donations made to charitable organizations, an expert says.

Despite the July 15 deadline extension as a result of the coronavirus, some taxpayers are advised to file early.

Clients may consider rebalancing their portfolio more often to address asset allocation shifts as a result of the downturn.

For starters, they can use the windfall to pay off debt, shore up their HSAs and build a cash reserve.

Cash-strapped taxpayers may consider waiting until the new deadline to pay or to request a payment plan to buy more time to settle their tax bill.

A revocable living trust is one way to reduce their estate taxes, however the law requires clients to sign the document in the presence of the notary.

If they plan to use them for current spending, “then the timing of the distribution would not matter for tax purposes,” an expert writes.

While the Trump administration has called for a delay to the April 15 deadline, they have yet to issue formal guidance on when paperwork is due.

Any gains on the sale of a property they've held for over a year may be taxed as much as 20%.

Designating charities as a beneficiary of their retirement accounts is one strategy that can enhance their tax savings.

Some tax credits are refundable, meaning they can get a refund in case the credits exceed their actual tax liability.

They are advised to consider making amendments if they want to take advantage of temporary tax provisions that Congress extended retroactively in December.

While they don't need a child to claim the earned income tax credit, the benefit's value increases based on the number of kids clients have.

Retirement savers stand to gain more by investing their money instead of taking an interest-free reimbursement.

Although the federal penalty was axed for those who failed to register for a plan, some states will continue to impose the coverage mandates.

Failing to pay taxes on side-gig earnings and keeping faulty records of business-related expenses must avoided to prevent an excessive tax burden.

While some tax-planning tasks can be time-sensitive, the challenge is to tackle the others that aren’t in a calculated fashion, an expert explains.