2022 Year-End Tax Planning Strategies
Once the holiday season commences, we often get wrapped up in the action and overlook important year-end housekeeping items that bring tax savings in April. In this workshop, we will discuss the top strategies to keep in mind when it comes to 2022 year-end tax planning — including itemized deductions, gifting tactics, bundling methods, donor-advised funds (DAFs), tax efficiency in portfolios, and more — to ensure you do not miss out on the various tax-saving opportunities available to you.
2022 Tax Brackets
2022 Standard Deduction
- Standard Deduction amounts increase if you are age 65+ and/or legally blind.
- For the 2022 tax year, the increase is $1,400, OR $1,750, if you are also unmarried and not a surviving spouse.
- Medical Expenses
- You can deduct unreimbursed medical expenses that exceed 7.5% of your AGI.
- State and Local Taxes (SALT)
- Up to $10,000 (includes State Tax, Real Estate Tax, and Personal Property Tax)
- Mortgage Interest Expenses
- You may deduct interest paid on up to $750,000 of mortgage debt for homes purchased after 12/16/2017.
- For homes purchased on or before 12/16/2017, the interest paid on up to $1,000,000 of mortgage debt is deductible.
- Investment Interest Expenses
- Investment interest is still deductible!
- Charitable Contributions
- Cash/Check/Credit Card/Payroll Contributions
- Non-Cash Charity Contributions (clothing, furniture, household items)
- Appreciated Securities
- Miscellaneous Itemized Deductions
- Eliminated (except for gambling losses used to offset taxable gambling income)
Common Tax Credits
- Child Tax Credit
- Credit for Other Dependents (Family Tax Credit)
- Child Dependent Care Credit
- Electric Vehicle (EV) Tax Credit
- Adoption Tax Credit
- Lifetime Learning Tax Credit
- American Opportunity Tax Credit
- Home-Related Tax Credits
Student Loan Interest Deductions
- May be able to deduct up to $2,500 of the interest on your student loan payments.
Health Savings Account (HSA)
- Participate through a High-Deductible Healthcare Plan (HDHP)
- Savings can be invested in the market
- May be able to help supplement retirement savings
- Triple tax free – aim to max out annual contributions!
- 2022 Contribution Limits
- Single: $3,650
- Family: $7,300
- Catch-up (age 55+): $1,000
- Key considerations:
- Tax Bracket Tax Diversification
- Age/Retirement Time
- Horizon Retirement Readiness
Tax Strategy Ideas
Before Year-End: 401(k)/403(b) contributions Mortgage prepayment Roth conversion Charitable giving 529 contributions Gifting Tax-loss harvesting By April 2023: IRA/SEP IRA contributions (SEP IRA deadline may be extended with tax extension) HSA contributions Defer Income Until 2023. Accelerate Deductions. Other Tactics: Mega Backdoor Roth Inherited IRAs (non-spouse)
Click here to view & download the complete 2022 Year-End Tax Planning Strategies handout.
Questions and/or interested in how this applies to your financial life?
Email us here: firstname.lastname@example.org.