Deadline: December 31, 2019

“In the past, prepaying real estate taxes could trigger the alternative minimum tax (AMT), but with a generous AMT exemption and a cap on deducting state and local taxes, AMT concerns are minimal. By prepaying real estate taxes in 2019 that are otherwise due before the end of 2020, taxpayers can get a discount on the 2019 taxes.” - Sidney Kess, CPA member of the AICPA Personal Financial Planning (PFP) Executive Committee

Deadline:  December 31, 2019 or sooner

“Review your investment portfolio before the end of the year to see what Long Term Capital Gain Dividend distributions have already hit the account and check to see if there will be any others to come before year end. If you don’t proactively consider these capital gains, you may be in for a big surprise this upcoming tax filing season. One way to protect your gains is by selling selected losing investments in your portfolio now. This is known as Tax Loss Harvesting and will help to lower your potential tax hit.” - Michael Eisenberg, CPA/PFS member of the AICPA Financial Literacy Commission

Deadline: December 31, 2019

“Taxpayers who upgraded their homes to make use of solar or certain other renewable energy in 2019 may be eligible for a tax credit of 30 percent to offset some of the costs. For those who are into renewable energy but haven’t had the work done yet, it may be too late to book an installer for 2019. Be aware that the solar credit reduces from 30 percent to 26 percent from 2019 to 2020. Though less, 26 percent is still a good rate. If you are going to miss the 2019 deadline, act now and reduce your 2020 taxes!” - Mackey McNeill, CPA/PFS member of the AICPA Consumer Financial Education Advocates

Deadline: December 31, 2019

“Many taxpayers have side gigs these days and can expect to pay both income and self-employment tax on those net profits in April. So, if you have expenses related to your business that need to be paid, do it before year-end to offset any current taxable income. Driving for a rideshare company? Maybe you have been eyeing some slick seat covers or gadgets, now is the time to invest.” – Cari Weston, CPA, CGMA Director of Tax Practice & Ethics at the AICPA

Deadline: Make it routine.

“The Tax Cuts & Jobs Act of 2017, and the resulting changes in the withholding tables in 2018, surprised many Americans on Tax Day last year because they had not withheld enough from their paychecks during 2018. It is important to check your tax withholdings regularly. If you feel more or less tax should be withheld, contact the Payroll/Human Resource Office at your employer and complete a new W-4 Employee’s Withholding Allowance Certificate. You can use line 6 of the W-4 to have extra federal tax withheld from each paycheck prior to the end of the year. Just remember to complete another form January 1, 2020 to remove the adjustment if you don’t want it to continue!” - Paula McMillan, CPA/PFS member of the AICPA Personal Financial Specialist (PFS) Credential Committee

Deadline: Check with your state. Most states it is December 31, 2019, although for a few it is April 15, 2020

“With more options available for using 529 plans, taxpayers could consider contributing additional funds to existing accounts (while keeping in mind gift tax implications) or setting up new 529 plans. Although contributions are not eligible for a federal income tax deduction, many states offer state income tax deductions. Contributions to these accounts can grow tax-free, and withdrawals used to pay eligible expenses are also tax-free.” - Dave Cherill, CPA member of the AICPA PFP Executive Committee

Deadline: December 31, 2019

“For taxpayers who are planning to utilize the standard deduction instead of itemizing, consider bunching your charitable contributions into alternate years if it will allow you to take the standard deduction one year and itemize an amount that exceeds the standard deduction the next. If you do not want to give the money to charity all at once, contribute to a donor advised fund and then make the distributions to charity over time.” - Lisa Featherngill, CPA/PFS member of the AICPA PFP Executive Committee

Deadline:  December 31, 2019

“For taxpayers age 70 1/2 or older who need to withdraw their required minimum distribution (RMD) from their IRA, they may consider utilizing a Qualified Charitable Distribution (QCD) of up to $100,000 to one or more qualified charitable organizations. This distribution counts toward satisfying their RMD and will not be taxable to the taxpayer. This strategy lowers a taxpayer’s adjusted gross income (AGI) which may allow for larger deductions that are subject to AGI limitations, such as medical deductions and charitable contributions. Also, this allows for a reduced amount of income in computing the amount of Medicare Part B premiums.” - Tom Pope, CPA member of the AICPA PFS Credential Committee

Deadline: April 15, 2020

“One way to lower your taxes is to put the maximum allowed in your HSA (generally $3,500 for individual coverage or $7,000 for family) even if you haven’t gotten there yet through your payroll deductions. You actually have until the April tax filing deadline to make a direct deposit to your HSA from your checking account, then deducting the deposit on your tax return. Remember that HSA dollars carry over indefinitely and are yours even if you switch jobs or retire, so if you have the funds, make the most of this tax savings opportunity to also save for future healthcare costs.” - Kelley Long, CPA/PFS member of the AICPA Consumer Financial Education Advocates

Deadline: Deferred from last paycheck or December 31, 2019

“If your employer offers a 401(k) match, whenever possible, everyone should find out what the limit is, then contribute at least the amount required to get the maximum match. The result is that you will have free pre-tax employer contributions at the end of the year. If you haven’t been contributing to your 401(k) plan at work at a level that gets you the maximum employer match, check on whether there may be a ‘catch up’ opportunity before year end. Leaving this benefit underutilized is the same as leaving money on the table.” - David Desmarais, CPA/PFS member of the AICPA PFP Executive Committee

Deadline: April 15, 2020

“Don't overlook the opportunity to fully utilize the power of Roth to build family wealth by making all allowable contributions for family members with earned income including children, grandchildren, and even parents. Starting a Roth account as young as possible allows for many years of tax-free growth which occurs when you've had a Roth IRA for at least 5 years and earnings are not withdrawn until after age 59 ½. If you haven’t reached the limit for the year, it might make sense to increase your contributions in order to take full advantage of this year’s opportunity to put away retirement savings dollars.” - Brooke Salvini, CPA/PFS member of the AICPA PFP Executive Committee

Deadline: December 31, 2019

“The cost of childcare for certain taxpayers can result in a childcare tax credit. If you qualify, don’t forget to include the cost of summer or winter camps if they are day camps and used so the parents can attend work or school.” – Cari Weston, CPA, CGMA Director of Tax Practice & Ethics at the AICPA

Deadline: December 31, 2019

“The year-end is a great time to make annual exclusion gifts. For those looking to reduce their estate tax exposure, individuals can give up to $15,000 to an unlimited number of beneficiaries per year without decreasing their lifetime estate tax exclusion amount or paying a gift tax. These planning opportunities will be lost once the year ends and should be top of mind to review now.” - Robert Westley, CPA/PFS member of the AICPA Financial Literacy Commission

Deadline: December 31, 2019 + reassess annually

“Tax projections should be prepared for the current year and at least 1 additional year. This allows you to make decisions about when to time deductions (e.g., should you bunch charitable deductions now or wait), as well as plan income in order to maximize opportunities like the Qualified Business Income deduction or Qualified Opportunity Zone program.” - Lisa Featherngill, CPA/PFS member of the AICPA PFP Executive Committee

Deadline: December 31, 2019

“The Roth IRA conversion continues to be an effective planning measure for certain taxpayers. Converting assets from ‘traditional to Roth’ creates tax free income in retirement, or for future generations. Although the new tax law does not affect conversions to a Roth IRA, it did end the ability to re-characterize a conversion after the fact. With lower marginal tax rates (currently) in place, this provides an opportunity for taxpayers to convert all (or a portion of) their traditional IRAs today.” - Dave Cherill, CPA member of the AICPA PFP Executive Committee

Deadline: December 31, 2019 setup for certain plans, return due date for others

“If you are self-employed and find yourself with some extra cash this year or are just interested in setting money aside for yourself or your staff, talk to a CPA financial planner today about your options.  Some plans must be in place by December 31 but can be funded into 2020 while still receiving a tax benefit on your 2019 return.” – Cari Weston, CPA, CGMA Director of Tax Practice & Ethics at the AICPA