• Home
  • Our Firm
    • About Our Firm
    • Attorney and Staff Profiles
    • Client Testimonials
  • Seminars
    • Public Seminars
    • Client Seminars
  • Estate Planning
    • Asset Protection
    • Elder Law & Medi-Cal Services
    • Estate Planning
    • Retirement Planning
    • Loss of a Loved One
    • LGBT Estate Planning
    • Pet Planning
    • Power of Attorney
    • Probate
    • Trust Administration
    • Special Needs Planning
    • Help Parents with Young Children
    • Incapacity Planning
    • Estate and Gift Tax Figures
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Nursing Home Planning
    • Hospice Care
    • Life Care Planning Services
    • Geriatric Care Management
    • San Jose Medi-Cal Planning Attorneys
    • Veterans Benefits
  • Estate Planning Resources
    • Reports
      • Advanced Estate Planning Reports
      • Basic Estate Planning Reports
      • Estate Planning for Niches
      • Trust Administration
    • Elder Law Reports
    • Seminars
    • Free Estate Planning Worksheet
    • Professional Resources
    • Top 10 Estate Planning Techniques
    • Frequently asked questions
      • Estate Planning FAQ’s
      • Frequently Asked Questions for Families Without an Estate Plan
      • LGBT Estate Planning Frequently Asked Questions
      • Legacy Wealth Planning FAQ’s
      • Trust Administration & Probate Frequently Asked Questions
    • Newsletters
    • Estate Planning & Related Forms
  • Review Us
  • Contact Us
  • BLOG

WAEstate

Helping Families Preserve Their Wealth and Legacy

Connect with us today(408) 356-9200

Attend a Free Seminar

Tax Tips after New Year

January 30, 2019Legal Education, Estate Planning

Blog Author: Stephen C. Hartnett, J.D., LL.M. (Tax), Director of Education,
American Academy of Estate Planning Attorneys, Inc.

The ball has dropped in Times Square and we’ve bid farewell to 2018. But there are still a few things we can do to adjust our tax liability for 2018 before filing tax returns on April 15.

First, you’ll need to organize all your tax records. That way, you’ll have some idea of what your tax liability might be. After you’ve organized your tax records, if you find you will owe money, there are a couple things you can do.

You can contribute to your IRA for 2018. That’s right, even though it’s now 2019, you can still contribute to your IRA for 2018. That’s the magic of IRAs. You can contribute for the prior year up until April 15.  When you make the contribution, be sure you designate for which year you intend the contribution. This holds true for traditional (deductible and nondeductible) IRAs and also Roth IRAs.

If you contribute to a deductible traditional IRA, that will reduce your taxable income for the year. The maximum IRA contribution for 2018 is $5,500 ($6,500 for those age 50 and over). A contribution to a nondeductible traditional IRA or to a Roth IRA will not produce a tax deduction and won’t alter your taxable income for the year.

After you’ve organized your records and made your IRA contribution, you may still find you will owe money. If so, be sure to file an estimated tax withholding payment by January 15. If you make the full estimated tax payment by January 15, you won’t owe interest and penalties for income received in the fourth quarter. Depending upon when you received your income during the year, you might still owe interest and penalties. But, making the estimated payment by January 15 will reduce the problem.

Finally, it’s a new year and it’s a great time to start planning to minimize your tax liability for 2019. If you planned well in 2018, that’s great, congratulations! If you could have planned better in 2018, let’s put those lessons learned to good use in 2019! As you prepare your taxes, you can find more tax tips here.

Litherland, Kennedy & Associates, APC, Attorneys at Law are members of the American Academy of Estate Planning Attorneys.  If you would like to learn more about the importance of estate planning, we invite you to attend one of our free estate planning seminars.

  • About
  • Latest Posts
Justin M. Kennedy

Justin M. Kennedy

Attorney at Law at Litherland, Kennedy & Associates, APC
Justin M. Kennedy

Latest posts by Justin M. Kennedy (see all)

  • Tax Tips after New Year - January 30, 2019
  • Good News for those interested in Medi-Cal Eligibility who have 529 Education Accounts - January 22, 2019
  • Selecting an Agent - January 16, 2019

Other Articles You May Find Useful

Selecting an Agent
Turning the Page on 2018 and Looking Forward to 2019
Naming a Trust as Beneficiary of an IRA
QDRO: Not Just for Divorce Anymore
Being Thankful and Sharing Your Blessings
Prenuptial Agreements Can Provide Remarriage Protection

FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

Testimonials

Feeling of Confidence! Very well thought-out professional system covering all foreseeable events relating to our estate. We are very pleased with the detailed guidance. All the staff members have been of the highest professional level.

- Jit and Roseanne K

Blog Subscription

CAMPBELL

Campbell Office
3425 S. Bascom Ave, Suite 240
Campbell, CA 95008
Phone: (408) 356-9200

See Larger Map Get Directions

Campbell Office Hours

Monday8:30 AM - 5:30 PM
Tuesday8:30 AM - 5:30 PM
Wednesday8:30 AM - 5:30 PM
Thursday8:30 AM - 5:30 PM
Friday8:30 AM - 5:00 PM

APTOS

Aptos Office
9057 Soquel Dr., Bldg B, Suite D
Aptos, CA 95003
Phone: (831) 476-2400

See Larger Map Get Directions

APTOS OFFICE HOURS

*BY APPOINTMENT ONLY

Map

attorneyoffice_sidbr_map
  • Speaker Connection
  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
Litherland, Kennedy & Associates, APC



Attorney Advertisement

© 2019 American Academy of Estate Planning Attorneys, Inc.