Tax-saving strategies take time to implement, so it is important
to not wait until the end of the year. This blog offers several
midyear strategies for individuals to consider, including
reducing taxable income, modified adjusted gross income (MAGI),
and/or net investment income; contributing to retirement plans; and
planning for medical expenses.
In the quest to reduce your tax bill, year-end planning can only
go so far. Tax-saving strategies take time to implement, so review
your options now. Here are several midyear strategies to
consider.
Consider Your Bracket
The top income tax rate is 39.6% for individuals with taxable
income over $400,000 ($450,000 for joint filers). If you expect
this year's income to be near the threshold, consider
strategies for reducing your taxable income and staying out of the
top bracket. For example, you could take steps to defer income and
accelerate deductible expenses.
