As we approach the end of a very challenging year, it's a good idea to think about personal income tax planning now so that you can maximize tax savings in 2020 and be prepared when final tax payments are due.
Since individuals are taxed on a calendar year basis, Dec. 31, 2020 is generally the last date for transactions that affect 2020 personal income taxes. So even though your personal tax return won't be due until April 30, 2021 (or June 15, 2021 if you or your spouse is self-employed), there are good reasons to consider a number of tax planning opportunities now before it's too late.
Below are some strategies to help you manage your tax costs. Keep in mind that while not all of these strategies may apply to your particular situation, a trusted BDO advisor can assist you with your tax planning needs.
It's not too late to save on your 2020 taxes
Tax planning shouldn't be something that only happens when you file your tax return. By investing some time to review your personal tax situation during the year, and especially as you near the end of the year, you may find some easy ways to save on your annual personal tax bill.
Contact your local BDO office today to see which year-end strategies work best for you.
