What did you think I was going to write? Many of us start thinking about tax planning for 2021. April 2022 is way to late, my friends. All we can then is report the information, not fix it.
What could you do? I am so glad you asked. You should be in contact with your CPA. If you do your taxes, then you should do the same. Review all the sources of income to determine if you can take some steps to reduce the taxable income. Not your income.
Most of us don’t realize that we have income and then we have taxable income. These aren't the same. Our salary is our income. However, when you contribute some of that money to your IRA or 401k, the amount you contribute reduces your taxable income.
Have you taken advantage of fully funding your 401k or IRA? Have you or will you make any charitable contributions? Find out what you can do to document it correctly to take a deduction—these types of questions.
Spoiler alert — I am not a CPA. I am aware of what we could be doing as ’tis the season.