2022 Individual Year-End Tax Planning Reference Guide

With year-end approaching, it’s time to start thinking about moves that may help lower your tax bill for this year and next.

This year’s planning is more challenging than usual due to recent changes made by the Inflation Reduction Act of 2022 and the potential change in the congressional balance of power resulting from the midterm elections. 

Whether or not tax increases become effective next year, the standard year-end approach of deferring income and accelerating deductions to minimize taxes will continue to produce the best results for all but the highest income taxpayers, as will the bunching of deductible expenses into this year or next to avoid restrictions and maximize deductions. 

If proposed tax increases do pass, however, the highest income taxpayers may find that the opposite strategies produce better results: Pulling income into 2022 to be taxed at currently lower rates and deferring deductible expenses until 2023, when they can be taken to offset what would be higher-taxed income. This will require careful evaluation of all relevant factors. 

We have compiled a list of actions based on current tax rules that may help you save tax dollars if you act before year-end.

Not all of them will apply to you, but you (or a family member) may benefit from many of them. We can narrow down specific actions when we meet to tailor a particular plan for you. In the meantime, please review the following list and contact us at your earliest convenience so that we can advise you on which tax-saving moves might be beneficial. 

Year-End Planning Equals Fewer Surprises 

There are many other opportunities to discuss as year-end approaches.
And many times, there may be strategies such as deferral or acceleration of income, prepayment or deferral of expenses, etc., that can help you save taxes and strengthen your financial position.  
Whether it’s working toward retirement or getting answers to your tax and financial planning questions, we’re here for you.
Please get in touch with our office today at 517.323.7500 to set up your year-end review.
As always, planning ahead can help you minimize your tax bill and position you for greater success.  

Did You Know? 

The SECURE Act permits a penalty-free withdrawal of up to $5,000 from traditional IRAs and qualified retirement plans for qualifying expenses related to the birth or adoption of a child after December 31, 2019. The $5,000 distribution limit is per individual, so a married couple could each receive $5,000. 
Individuals age 70½ or older can donate up to $100,000 to a qualified charity directly from a taxable IRA. 
Donating appreciated property to a qualified charity avoids long-term capital gains tax.  

2022 Tax Planning Guides

Individual Guide



Business Guide