End-of-Year Tax Planning Guide

The Bird’s Eye View:

Consider this your end-of-year tax planning guide. Find out why tax planning is often a missing piece in people’s financial plans.   


Your Guide:

In our 19 years of financial planning, we have talked a lot about tax planning. It’s an important topic that more people should be familiar with. On this episode of Your Retirement Elevated podcast with Scott Dougan, we explain why tax planning is so important, how the election could affect taxes and much more.

Why tax planning is often a missing piece

Tax planning should always be top of mind, but it’s usually a big missing piece in people’s plans.

“You need to be proactive in your tax planning,” said Scott. “The IRS does not send out a helpful guide.”

Our job is to help you navigate what the rules are and help you take advantage of what’s available to you. We don’t do tax preparation, but we can help with tax planning and help you make changes to your financial situation to affect taxes.

Itemization vs. standard deduction

The Tax Cuts and Jobs Act roughly doubled the standard deduction. Since 2018, only about 10% of people have itemized their taxes. Most find it’s more beneficial to take the standard deduction.

If you itemize, keep your receipts, and your tax preparer can help you.

CPAs vs. financial planners

CPAs are historians. They collect information you give them about what happened the previous year and tell you what you owe or what refund you will get.

Financial planners can help you do tax planning and figure out things you can do to positively affect your taxes going forward.

Actions to consider before year-end

A few things to consider before the end of the year:

– Estimate what your taxable income will look like for 2020

– Research the notable tax changes for 2020

– Review your capital gains and losses

– Consider a Roth IRA conversion

Listen to the full episode to hear more about notable tax changes, how the election could affect taxes and more. Use the timestamps below to find specific segments.

[2:15] – Why tax planning is often a missing piece

[5:38] – Itemization vs. standard deduction

[7:48] – CPAs vs. financial planners

[11:00] – Actions to consider before year end

[15:29] – Making contributions next year

[17:22] – Notable tax changes

[20:42] – Other important tax considerations

[26:11] – How the election could affect taxes

[30:55] – Eliminating the step up in basis

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.


Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact