2022 Year-End Tax Planning

Once again, we are approaching the end of the year, which means it’s a good time to think about things you can do to help reduce your federal tax bill. Although there are no guarantees, it looks like planning for income taxes may be a little simpler this year than in the past few years. The Inflation Reduction Act of 2022, which was signed into law in August, was a slimmed‐down version of the tax changes that were originally included in President Biden’s proposed budget. With midterm elections approaching, it might be safe to say that a lot of Congressional attention is focused elsewhere and that we may have all the tax legislation we are going to get this year. We think it’s unlikely that individual income tax rates are going to increase in the near future. If any tax legislation occurs in 2023, the changes will most likely be prospective. Of course, this is Congress. So, never say never.

With that said, here are some things to think about doing before the end of 2022.