People working on their taxes.

Make a Year-End Tax Plan

BECU Investment Services

Check the background of investment professionals associated with this site on FINRA's BrokerCheck.

No matter what the new year may bring, it's important to take the time to get your documents in order and make strategic decisions for your taxes.

You can start preparing with these tax-planning steps.

Tax Planning Tips

Here are some thoughts on how to start a tax plan:

  1. If you can control when you receive your income for 2022 and 2023, now is the time to decide if you want more or less income to be reported in the 2022 tax year or the 2023 tax year.
  2. If you can make contributions to a 401(k), based on your self-employed earnings, be sure to have the necessary documents.
  3. Will you have enough funds in all Schedule A deductions to get over the limit for the standard deduction amount? For 2022 taxes, the standard deduction is $12,950 for singles ($13,850 for 2023); $19,400 for heads of household ($20,800 for 2023); and $25,900 for married filing jointly taxpayers ($27,700 for 2023).

The standard deductions were almost doubled with changes from the Tax Cuts and Jobs Act for 2018. As a result, through 2025 (when the Tax Cuts and Jobs Act will be in effect) there are several taxpayer groups who may benefit from itemizations during that period of time. That number is likely to drop significantly due to the much bigger standard deduction.

Easily Overlooked Tips

Here are several other issues to consider:

  • If you make charitable contributions, decide if you want to contribute this year or next year.
  • If you can get a medical expense deduction because your medical expenses exceed 7.5% of your adjusted gross income, try to pile as much medical care as you can into this year. Get an eye exam, glasses, dental work, year-end doctor visits and tests before year-end. Remember, miles that you drive to get medical care and pick up prescriptions count toward the medical expense deduction.
  • This might be a good time to do house cleaning and donate things that you don't need. Be sure to make a list, get the values documented and get the items to the charity of your choice. Save that receipt.

Don't Forget Retirement Contributions

Apart from planning your deductions, now is a great time to figure out if you are able to contribute to a Roth individual retirement account (IRA) in addition to the amounts you are contributing to your 401(k) or 403(b) or other tax-deferred program at work.

For most of us, the Roth IRA is a very valuable part of retirement planning. It is easy to set up with a mutual fund company so you can contribute an amount every month so that by the end of 2023, you have it all taken care of.

Talk to a Financial Advisor

Financial advisors with BECU Investment Services are here to help. Our team will take the time to get to know you, understand your goals and plan and implement a financial strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. BECU and BECU Investment Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using BECU Investment Services, and may also be employees of BECU. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, BECU or BECU Investment Services. Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value

Your Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services.

Please read the LPL Financial Relationship Disclosure for more detailed information.

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

LPL Tracking #1-05350052