The Holt sisters were pioneers who inspired so many within their own lifetimes. But more and more, taxpayers are finding it pays to get an early start. This Social Security change could affect the income tax liability of many people, and may signal the need for a review of tax planning strategies. And, for those who do receive the windfall, it may provide a fresh opportunity to explore creative, tax-wise gift plans, which may substantially benefit both the donor and the Lighthouse. Of course, there are many other reasons to get a running start on your year-end planning, especially if you have been affected, as many people have, by the recent volatility of the stock market.
Good planning takes time.
And you need plenty of time to implement any effective tax-saving strategies before December 31. A logical first step in your year-end planning might be to make an assessment of your income picture for this year and next. Balance Income and Expenses Suppose you're having a high-income year and expect to be in a lower tax bracket next year. You may want to look at some income deferral strategies such as delayed billing to clients or deferral of a bonus until after the end of the year. You also may want to accelerate your deductible expenses.