Strategies to Minimize Your 2024 Tax Bill: Don’t let taxes eat into your hard-earned money. Learn expert tips to optimize your tax planning for 2024 and beyond, from tax loss harvesting to charitable giving.

As the year draws to a close, it’s time to shift your focus to tax planning. With potential changes in tax laws and the uncertain future of the Tax Cuts and Jobs Act, proactive tax planning is more crucial than ever.

Lisa Featherngill, National Director of Wealth Planning at Comerica Wealth Management, offers valuable insights to help you minimize your tax burden:

1. Start with a Tax Projection
Before making any significant financial decisions, it’s essential to understand your current tax liability. A tax projection can provide a clear picture of your tax situation and help you identify potential tax savings opportunities.

2. Tax Loss Harvesting
If your portfolio has experienced losses, consider tax-loss harvesting. By selling underperforming investments and realizing losses, you can offset capital gains and reduce your overall tax bill.

3. Charitable Giving
Donating to charity can provide significant tax benefits. If you itemize deductions, donating appreciated stocks can offer a double benefit: a charitable deduction and avoiding capital gains tax.

4. Monitor Tax Law Changes
Keep an eye on potential changes to the Tax Cuts and Jobs Act. Stay informed about any updates that may impact your tax strategy.

5. Multi-Year Tax Planning
For those nearing different tax brackets, multi-year tax planning can be a powerful tool. By strategically timing income and deductions, you can minimize your overall tax liability.

6. Business Owner Tax Strategies
Business owners have more flexibility in timing deductions. By carefully planning your business expenses and income, you can optimize your tax situation.

7. Review Retirement Plan Options
If you’re self-employed, explore retirement plan options like SEP IRAs and Solo 401(k)s to maximize your tax savings.

By implementing these strategies and seeking professional advice, you can effectively minimize your tax burden and maximize your after-tax income.
Remember, tax laws can be complex, so consult with a tax advisor to tailor a personalized tax plan. Watch this free FinStream video to learn Strategies to Minimize Your 2024 Tax Bill and find more tax planning videos in FinStream’s Tax Planning Center at this link: https://www.finstream.tv/videos/tax-planning