Year-End Tax Planning for 2017 for Individuals

Year-End Tax Planning for 2017 for Individuals

Just as the daylight hours are getting shorter, so is the time for fine tuning any last-minute strategies to lower your 2017 tax bill. Often, the correct steps to take will depend on whether you see your income going up or down next year.

For the first time in decades, tax reform is a real possibility. For 2017, current law provides seven tax rates depending on your income.

The following are some of the items we should review when discussing year-end tax planning options that may be relevant to your situation.

Retirement Plans Considerations

Fully funding your company 401(k) with pre-tax dollars will reduce current year taxes, as well as increase your retirement nest egg. For 2017, the maximum 401(k) contribution you can make with pre-tax earnings is $18,000. For taxpayers 50 or older, that amount increases to $24,000.