900 N. Kings Highway, Cherry Hill, New Jersey 08034
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Fax: 856.667.3652
The Online Advisor - October 1999
It's time for a tax review
If you haven't already done so, now is the time to review your 1999 income tax situation and see if there are some tax-cutting moves you could make. Consider these possibilities:
* Check your 1999 income tax withholding or estimated tax payments to be sure you've paid in enough. If you haven't, you may be subject to underpayment penalties. If you're underpaid, consider increasing your withholding during the rest of 1999 or increasing your final quarterly estimate.
* Don't overlook the tax savings available for contributions to retirement plans. Get details on the contribution amount allowed for 401(k) plans if your company has a plan. If you don't have a pension plan at work, think about an IRA contribution. If you're self-employed, consider establishing a Keogh retirement account before December 31.
* If you're going to be able to itemize deductions on your 1999 return and get a tax benefit from them, consider squeezing in more deductions before year-end. For example, pay outstanding property tax bills, make charitable contributions, and schedule and pay for elective medical treatment.
* Review gains and losses in your investment portfolio. If you need losses to offset gains you've already taken, consider selling investments that have decreased in value. Up to $3,000 of excess capital losses over capital gains can be deducted against ordinary income such as your salary.
* Some married couples pay substantially more income tax because of the tax code's "marriage penalty." If you're planning to marry or divorce between now and the end of 1999, you should find out if accelerating or delaying the event could cut your 1999 tax bill.
If you'd like to discuss these and other tax-cutting options appropriate to your particular circumstances, contact our office to arrange a year-end tax planning review.