End of Year Tax Concerns
Once January 1 rolls around, you generally lose the ability to make any changes or elections that can impact the tax return for your previous year. Therefore, you must make any moves prior to the end of the year to put you in a better position when you file taxes. Otherwise, you can be hit with a large bill unnecessarily on tax day. Your ending income for the year can significantly impact your taxes. It can put you in a higher tax bracket or make you subject to the alternative minimum tax. Many taxpayers are hit with the surprise that their income makes them subject to the AMT, and they only learn it in the following year. You should consider ways of reducing your income in the current year or…