Whether you have paid individual income taxes through employer withholding or quarterly estimates, thoughtful planning before the calendar turns to 2020 can reduce your total tax liability and help retain more of your earnings. If you devote substantial research and forethought to how you invest your money, then it is often prudent to take a similar approach with your income tax situation.
The process of reviewing your projected income should entail the extent to which you can control the timing of income and deductions, and then optimize your Planning for the lowest overall tax in both 2019 and 2020. Important considerations include charitable gifts, capital losses, retirement contributions, potential gifts to children or grandchildren, and using trusts. If you can’t reduce your overall tax liability, then it’s generally best to defer as much tax liability as possible to 2020.
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