Expertise Beyond the Numbers

Top 10 Smart Tax Moves to Make Before 2014

With 2013 coming to a close, now is the right time to implement some smart year-end tax planning that can make a big difference in your finances.

SC&H Group has developed the following tax tips to consider before December 31, 2013 to help make your life a bit less financially stressful during the hectic holiday season.

Tip #1Use of Additional Withholding

  • Request employer to withhold additional tax from year-end bonuses or payroll to satisfy additional tax liability and avoid underpayment penalties.

Tip #2:  Acceleration of Deductions

  • Make the payment of such expenses as 2014 real estate taxes and fourth quarter estimated state tax payments (after reviewing AMT impact) prior to year-end.

Tip #3:  Roth Conversion

  • While income tax is paid on pre-tax contributions and earnings, the converted amount continues to grow tax-free.  Keep in mind that withdrawals are tax-free and penalty-free after you reach age 59½.  You have until October 15, 2014 to undo the conversion if you are not satisfied with the tax result.

Click here to learn more about SC&H Group’s Tax Services.