“Plan Now to Reduce Your Taxes in the Future”

– Deferring a year-end bonus or postponing income can help those who expect to be in the same or lower tax bracket next year.
– Accelerating deductions can benefit those who anticipate being in a lower tax bracket next year, and it can also help reduce the adjusted gross income to keep under the threshold for the net investment income tax.
– Accelerating income and/or postponing deductions can help those who expect to be in a higher tax bracket next year, potentially due to an increase in income.
– High-net-worth families who want to donate significant amounts can benefit from being very generous to reduce their tax bill. 1. Using a credit card to make a charitable gift in December allows the donor to claim the deduction for 2022, even if the bill is paid in January 2023.
2. Establishing a donor advised fund enables immediate federal income tax deduction, even if funds will be disbursed in later years.
3. The CARES Act allows for a deduction of up to 60% of adjusted gross income in cash contributions for itemized 2022 charitable giving.
4. Bunching deductions by making a large charitable gift may help individuals take advantage of itemizing this year and taking the standard deduction in other years.
5. Consult with attorneys, accountants or tax advisors for questions relating to the deductibility of various contributions to a Donor-Advised Fund for federal and state tax purposes.

https://www.raymondjames.com/commentary-and-insights/tax-planning/2023/10/06/trim-your-future-tax-bill-by-thinking-ahead