The Internal Revenue Service (IRS) begins accepting federal and state taxes on February 12, 2022. What this means is citizens of the U.S. should be gathering all of their financial documents in preparation for meeting the filing deadline which is April 15, 2022.

Here are a few things to consider leading up to the tax deadline:

1. U.S. citizens had until December 31, 2021, to make 401K contributions, however, they can make health savings account (HSA) contributions until April 15, 2022.
2. Retirees must make 401K and IRA required minimum distributions (RMD) each year when they reach age 72.
3. Convert money from a traditional IRA to a Roth IRA.
4. Contribute to a 529 account that pays for their children's college expenses while saving them state taxes.
5. When the end of the calendar year is coming to a close, don't invest in mutual funds, dividends from them will be taxable.
6. Harvest your capital gains, if you own stocks and lose money on them, you can sell them and receive a deduction on your federal taxes.
7. Pick up capital gains if you are in a low tax bracket.
8. Harvest losses on cryptocurrency.
9. Donate cash to a charity.
10. Meet with a tax advisor or work with one associated with your online tax filing service.

There are more tax tips to share, however, these ten will jumpstart the tax filing season for you. If you have questions and or comments, you can reach Paul Lawrence Vann at [email protected]

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