End-of-Year Tax Tips for 2021

The IRS offers tips on “What taxpayers can do now to get ready to file taxes in 2022” because it is never too early to get your tax records together for the upcoming tax season. The IRS is the most official source for updates on tax laws. However, a Fee-Only Financial Advisor can offer advice based on their review of your individual financial situation.

And CNBC.com points out that even with a few weeks left in the year, you can still adjust your withholding and add more to your retirement savings account. Changes you make as the year winds down are valid and can make a difference to your overall financial outlook. Changing your withholding for even the last few checks of the year can help if you are concerned about how much you will owe in taxes. They also offer the time-honored advice that you can offer more charitable gifts at the end of the year. 

You also need to make sure that your employer and financial institutions have your latest contact information. This is a simple step, but it is easy to forget. If you move, switch e-mail addresses, or change your name and forget to alert the relevant parties, this can throw off your tax planning.

According to IRS.gov:

“People can report address changes by completing Form 8822, Change of Address and sending it to the IRS. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office. They should also notify the Social Security Administration of a legal name change.”

These are moves that are within your power to make, as opposed to attempting to figure out just how to the advantage of the latest round of tax reform. CNBC.com observes, “…it’s difficult to predict how these measures may shift as the Senate begins negotiations. And many advisors suggest waiting for the final legislation before making any drastic moves.”

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