Illustration of a Tax Prep Checklist

Year-End Tax Season Planning Preparation

BECU Investment Services

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Tax advice is left to federally authorized tax advisors who prepare tax returns, defend clients pursuing relief, or dispute tax payment errors. Financial advisors don't provide tax advice but can provide information on the tax consequences of specific investments you have as part of financial planning. Some financial advisors are Certified Public Accountants (CPAs) or have the Certified Financial Planner (CFP) designation and can prepare tax returns for their clients1.
Financial advisors without these certifications can also provide advice on numerous financial situations and the tax consequences of each. They can also offer advice on:

  • Pension and retirement savings contributions and distributions.
  • Life insurance.
  • Annuities.
  • Other investments and tax information for each.

Income and Capital Gains Taxes

Financial advisors look for income in your portfolio, whether from qualified dividends, ordinary dividends, or tax-free income. Your tax bracket helps determine what types of investments are best suited for your situation, both for growth and from a tax savings perspective. You may have to move a tax loss from a bad year to a future year which may offset the increase from another investment. Reviewing past tax returns is critical to capturing income and losses for filing purposes.

Missed Deductions and Opportunities

It's common for clients to miss out on deductions they could be taking. These deductions could be incorrect payroll deduction for W-2s, missed deductions for college savings plans, long-term care premiums (if they exceed 7.5% of your adjusted gross income), and health insurance if you're self-employed.

Here are a few specific items for the 2022 tax filing season that may impact you:

Expanded Child Tax Credits

2022 is the last year to take advantage of The American Rescue Plan. The plan increased the 2022 child tax credit2 for eligible families with children under age 6 to $3,600 per child and $3,000 for families with kids ages 6 to 17. To qualify for the full credit, single filers need a modified adjusted gross income (AGI) of less than $200,000, and married couples filing together must earn under $400,000.

Charitable Deductions

Taxpayers that made charitable donations in 2022 may take advantage of a write-off for charitable gifts3 if the donation is 30% of their AGI, but they will need to itemize deductions on their federal tax return. For 2022, single filers may claim donations up to $12,950, head of household filers may claim up to $19,400, and married couples may get up to $25,900.

Filers may deduct 60% of AGI for contributions of cash. Contribution amounts in excess of these deduction limits may be carried over up to five subsequent tax years. Your tax advisor can help clarify how to maximize your deduction limits with carry over. If you intend to use charitable deductions as part of your giving strategy to help minimize taxes, work with your financial and tax advisors for tax planning strategies for 2022 and future years.

Health Insurance Premium Subsidies

In March 2021, Congress increased subsidies to help make health insurance more affordable for Americans. For 2022, the income cap for subsidy eligibility4 was eliminated, but will not be for 2023 and moving forward. However, premium subsidies will be capped at 8.5% of household income for 2023-2025 for individuals meeting the income level threshold.

Required Minimum Distributions (RMDs)

The Securing a Strong Retirement Act of 2022 extends the start of RMDs beyond age 72 on a gradual basis:

  • For those who turn age 72 after Dec. 31, 2022, and age 73 before Jan. 1, 2030, the RMD age would be 73.
  • For those who turn age 73 after Dec. 31, 2029, and age 74 before Jan. 1, 2033, the RMD age would be 74.
  • For those who turn age 74 after Dec. 31, 2032, the RMD age would be 75.

Source: Bankrate5

RMD rules apply to the original owner's age of a traditional IRA, Simple IRA, SEP-IRA, a 401(k), or 403(b). Roth IRAs do not have RMDs.

Talk to a Financial Advisor

Work with your financial and tax advisors regarding your investments and deductions to help determine how they may impact your tax situation when you file your 2022 taxes. Now is a great time to meet with them and put a plan in place for 2023 to help you next tax season too!

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.

1CFP vs. CPA: What's the Difference? (

2Child Tax Credit: Here's What To Know For 2022 | Bankrate

3How To Maximize Your Tax Deductible Donations – Forbes Advisor

4How the American Rescue Plan Act will boost marketplace premium subsidies |

5IRA Required Minimum Distributions Table 2022 | Bankrate

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