Top Tax Planning Strategies For An Individual In Florence, SC!
Updated: Oct 28, 2022
Your clients require more tax planning and assistance than ever before, especially as they cope with new tax legislation resulting from the COVID-19 problem. Here are some important tax planning strategies that might help them save money on taxes and improve cash flow in 2022.
Adjust Your Tax Withholding Or Anticipated Payments If Necessary.
You may wish to update Form W-4 if your customer owes taxes for 2019. Consider utilizing the IRS's "Tax Withholding Estimator" to assist you. In addition, if you make anticipated tax payments during the year (for example, if you're self-employed), review your tax status for 2020 to ensure you're not underpaying or overpaying.
Plans For Retirement
If any client is affected by COVID-19 infection and needs additional cash, the CARES Act has numerous tax-friendly provisions for retirement plan withdrawals of up to $100,000 done before 2022. So if they have money in a regular IRA and have been thinking about changing it to a Roth IRA, 2022 might be the year to do it.
Ordinarily, an updated tax return is only submitted when a mistake or omission has been detected on a previously filed return. With the current COVID-19 issue, every chance to put money back in your client's wallet is worthwhile. The cost of updating a prior year's return may be justified