The next few days are the final days for making adjustment that can affect the 2025 tax return, except for deductible IRA contributions that can be made until April 15, 2026. For us, that means making charitable donations, making medical purchases, such as prescription eyeglasses, and selling any stock market losses, to reduce our taxable income for 2025.
Although we have been doing the above for the last few months, some of our income, such as long term capital gains for mutual funds, didn't come until the last few days. In several cases, the gain was higher than estimated which required making further deductions to offset the additional income.
Next year, I will be better prepared earlier since I have a better understanding of the new tax laws and their effects. Also, I expect the capital gains distributions from mutual funds to be much lower in 2026.
This is not financial nor tax advice. Please consult a professional advisor.
Copyright © 2025 Achievement Catalyst, LLC
Subscribe to My Wealth Builder
No comments:
Post a Comment