Tax planning is an activity that is best pursued
year-round. You can use the following list of activities and dates
to help you better carry out your planning on a regular and ongoing basis.
| First Quarter |
- Complete Form W-4 and adjust
withholding if needed.
- Pay fourth-quarter estimated tax
voucher for the preceding tax year by January 15.
- Evaluate before-tax contributions
to retirement plans.
- Evaluate voluntary after-tax
contributions to retirement plans.
- Apply for a Social Security number
for any child who does not have one.
- Make quarterly defined benefit
Keogh contribution for preceding year by January 15.
|
| Second Quarter |
- Comply with minimum distribution
rules for qualified plans by April 1 if you attained age 70 in
previous year.
- File individual tax return (or an
application for an extension of time to file) by April 15.
- Pay first-quarter estimated tax,
using the correct voucher, by April 15.
- Make previous-year IRA
contribution by April 15.
- Make previous-year Keogh plan
contribution by April 15 (unless you applied for an extension of
time to file your tax return).
- Make quarterly defined benefit
Keogh contribution for the current year by April 15.
- Pay second-quarter estimated tax
voucher by June 15.
|
| Third Quarter |
- Make quarterly defined benefit
Keogh contribution for the current year by July 15.
- File Form 5500 Annual Report of
Employee Benefit Plan by July 31, if applicable.
- If you applied for an extension of
time to file your preceding year's tax return, file the return
or an additional extension request by August 15.
- Pay third-quarter estimated tax
voucher by September 15.
|
| Fourth Quarter |
- If you got an extension of time to
file later than August 15, you must file by October 15.
- Make your quarterly defined
benefit Keogh contribution for the current year by October
15.
- Begin your year-end planning:.
- Evaluate the applicability of the
AMT and other taxes.
- Adjust withholding, if
necessary.
- Evaluate year-end capital
transactions.
- Establish a separate Keogh plan
for self-employment income.
- Comply with minimum distribution
rules for qualified plans.
|
| Throughout the Year |
- Evaluate your tax and financial
strategy for receiving discretionary and mandatory retirement
plan distributions.
- Reevaluate your uses of
debt.
- Consider making gifts to children
or other family members up to the annual gift tax exclusion of
$12,000 per gift per donee per year.
- Evaluate passive loss exposure and
potential investment shifts.
- If you have excess cash flow,
consider how to invest those funds.
- Optimize mix of interest expense
items.
- Consider making charitable
contributions of property, instead of (or in addition to) giving
cash.
- Consider ways to fund your
children's education.
- Evaluate your mix of portfolio and
passive income.
- Review prior gifts to children
under age 14 and their incomes in order to minimize the amount
of income that will be taxed at your rate.
- Review the selection of your
second residence and status of your vacation home.
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This material is designed to provide
accurate and authoritative information with regard to the subject matter
covered. It is made available with the understanding that the
publisher is not engaged in rendering legal or accounting
services. If legal advice or other expert assistance is
required, the services of a competent professional person should be
sought.
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Fort Smith, AR 72908
(479) 648-1593
3905 Elliott Street
Springdale, AR
(479) 751-6444
800-569-8768
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