Our tax-smart approach can help with
year-round tax planning
We use 3 primary strategies in your portfolio to help reduce your potential tax liability. If and when we deploy each of these strategies may vary depending upon your specific financial situation, as well as the state of the broad markets at any given time
We will monitor your portfolio throughout the entire year and identify opportunities to take a tax loss on certain investments in order to offset other investments which may have produced a taxable gain. This approach saves you from paying unnecessary taxes.
Manage capital gains
When the need arises to sell investments in your account, generally speaking we will look first to sell those investments you’ve held longer term because they may be eligible for Long-Term Capital Gains treatment, which has more favorable tax rates than Ordinary Income tax treatment.
Before any withdrawals are made within your portfolio, we will first screen the transaction(s) to ensure they are the smartest option from a tax standpoint. If withdrawals are planned, we’ll make sure you have sufficient cash in your portfolio. If we have to sell investments to create cash for your withdrawal, we will strategically choose which investments to sell for tax efficiency.
What are the changes to the 2023 tax code and how do they impact me?
With record inflation not seen for decades, federal income tax brackets and standard deductions will be higher in 2023 based on an IRS announcement. This will help all Americans who are trying to adjust to 40-year highs in many industries including housing, gas, and groceries.
Financial planning and tax efficiency go hand-in-hand. Whether you’re looking to properly save for retirement, help improve your income tax situation or want help with your business taxes – we can create a customized plan for you.
Schedule An Appointment
With Harding Financial
Get a one-on-one consultation
Get a one-one consultation with our tax advisors to begin the conversation about your tax goals, needs, and current financial situation.
See our Frequently Asked Questions below for commonly asked questions about Retirement Planning.
Frequently Asked Questions
Ordinary income includes earned income (such as wages and tips) as well as interest income (think anything that pays you interest). Capital gains arise when you sell a capital asset such as a stock, bond, real estate property, car collectible or art for more than its purchase price. If the holding period of the sold asset is longer than 1 year, the capital gain is more favorable from a tax perspective than ordinary income in most cases.
- Child Tax Credit – Child Tax Credits can be claimed for each child with a Social Security number, that is legally allowed to be employed in the U.S. and qualifies under the IRS rules.
Learn more about Child Tax Credits on IRS.gov.
- Child & Dependent Care Credit – You may be able to claim this credit if you paid expenses for the care of a qualifying individual to enable you (and your spouse, if filing a joint return) to work or actively look for work.
Learn more about Child & Dependent Care Tax Credits on IRS.gov.
- Adoption Credit – Adoption tax benefits are two-fold:
1. Qualified adoption expense tax credit paid to adopt an eligible child
2. An exclusion of income for employer-provided adoption assistance.
Learn more about Adoption Credits on IRS.gov.
- American Opportunity & Lifetime Learning Tax Credits – If you, or a dependent you claim, are enrolled in an eligible educational institution, you may qualify for one, or both, of the education tax credits.
Learn more about Education Tax Credits on IRS.gov.
In 2022, there are 9 states that do not tax “earned income”, however there may be tax on other forms of income. Those 9 states are as follows:
- New Hampshire
- South Dakota