2022 has been a busy year for most people. As this year is rushing toward the end, it is important ensure that you have taken advantage of the planning options available to you.
Income Tax Planning Opportunities
The first step in creating your year-end tax strategy is determining your expected marginal tax rates for 2022 and 2023. In general, if your marginal tax rate is expected to stay the same or go down next year, then you should consider deferring income to next year and accelerating deductions to 2022. If your marginal tax rate is expected to go up next year, then you may wish to consider accelerating income into this year and deferring deductions.
