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These New Year's tax resolutions can help clients save

Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.

Seven New Year’s tax resolutions for 2019
Clients should consider adopting these New Year’s resolutions that will improve their tax situation next year. For example, taxpayers should not panic about the new cap on state and local tax deductions. They should also review their tax forms for possible errors, watch out for tax-related scam and sort out receipts and other financial records before handing over their documents to a tax preparer. Investors should also know the tax implications of holding stocks and other investments in taxable accounts.

Getting a bonus at work this year? How you can save on taxes
Clients who receive a bonus by the end of the year can use the windfall to help reduce the tax bite, according to CNBC. Aside from receiving lower tax rates on income, workers also have the option of deferring the bonus until next year and reduce their tax obligation for the current year. They may also opt to donate the money to a charity before the end of the year to qualify for the charitable tax deduction. Moreover, "increasing your contribution to your 401(k) can help reduce your taxable income in a year that you have higher income.”

Times Square_New Years Eve
A billboard reads "Happy New Year," ahead of New Year's Eve celebrations in the Times Square area of New York, U.S., on Saturday, Dec. 30, 2017. As temperatures dip into the teens, over one million revelers will gather in Times Square to watch as the iconic ball drops over New York, bidding farewell to the departing year and ringing in the year ahead. Photographer: Michael Nagle/Bloomberg

5 items for your year-end financial wellness checklist
The end of the year is a great time for clients to review the beneficiaries of their investment accounts and insurance policies, according to Kiplinger. Clients concerned about their financial health may also want to check their current and projected Social Security benefits. They may also want to consider contributing to a Roth IRA to boost tax-free income in their golden years. Clients should also look for tax-smart ways to donate to charity, such as holding off on donating until next year when they can maximize the deduction.

Tax guide to divorce in 2019
Spouses who have decided to separate will no longer get the tax deduction for alimony payments if they wait until next year to finalize the divorce, according to Fox Business. “There is no incentive to pay alimony now. It’s really all just money out of the pocket for the payer … [it’s] harder to encourage that when you have no benefit to exchange.”

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