Paul Eikenberg, YFP CFO and Director of YFP Tax, discusses how pharmacists can optimize their tax strategy.

Key Points from this Episode

• Paul and Tim catch us up with some exciting happenings in the YFP tax team.
• Understanding the important difference between tax preparation and tax planning.
• Differentiating your marginal tax rate and effective tax rate as a decision-making tool.
• Paul explains the implications of AGI and how to arrive at that number.
• Touching on the complicated system of student loans and pursuing loan forgiveness.
• Some common tax blunders that you should look out for!
• Key credits and deductions that you might not be taking advantage of.
• What is going to be available moving forward with child-care and dependent care.
• Explaining donor-advised funds and a potential strategy around bunching.
• Two exciting tax services: reporting only and year-round planning and reporting

Links Mentioned in Today's Episode

• Join the YFP Tax Waitlist
• Join APhA - Get 25% Off Your Membership with Code: YFP
• YFP 165: The Power of a Health Savings Account
• Why I'm Not Using My Health Savings Account to Pay for Medical Expenses
• YFP Planning: Financial Planning for Pharmacists
• Ask a YFP CFP #85: How can I maximize the tax benefits of donor advised funds?
• YFP 211: The Ins and Outs of the 529 College Savings Plan
• 7 Things to Consider Before Starting a 529 Plan
• Your Financial Pharmacist Disclaimer and Disclosures

End of Year Tax Checklist

• Project your income, taxes, and withholding
• Maximize your HSA contribution
• Know your FSA carryover limits and spend accordingly
• Consider 529 account contributions
• Document side business expenses - Mileage Logs**
• Have and execute a charitable contribution strategy
• Correct any over contributions to 401K/403B/IRAs
• Manage your capital gains
• Look for IRS Letter 6419 Advanced Child Credit & Notice 1444-C
• Have a system for organizing your tax documents
• Select & engage your tax preparation method