Grow and protect your wealth in 2019 and beyond.
Why put off until tomorrow what can save you money today? Citi Personal Wealth Management can help you better understand how to reduce your 2019 taxes. We have also outlined areas to consider when starting to think about how to confidently grow and protect your wealth in 2019 and beyond.
Prepare for Your 2019 Taxes Today
Check Your Tax Withholding
Use the IRS Withholding Calculator to evaluate whether your employer is
withholding too little or too much in taxes.
Sell losing investments
By selling investments at a loss, you can offset any realized gains and up to $3,000 of ordinary income if married and filing jointly or $1,500 filing single.
Jump-start education savings
Check with your advisor to see if you’re eligible for state income tax deductions on a 529 plan, where you can save on a tax-deferred basis and withdraw tax free to pay qualified expenses for college and K-12. (Please note: Some states have not adopted the federal law allowing the use of a 529 plan for K-12 expenses.)
Manage your portfolio
Consider holding dividend-paying stocks in your taxable accounts, while perhaps keeping taxable bonds and CDs in your retirement accounts. If your dividends meet certain requirements, they’ll typically be taxed at a lower rate.
Avoid tax penalties
Pay your federal estimated tax installments on time to avoid tax penalties.
Take everyday steps toward retirement
Save more for retirement on a tax-deferred basis and reduce your taxable income by increasing your pretax contributions to employer retirement plan(s), such as 401(k)s and 403(b)s, with limits increased in 2019 to $19,000, and if you are over 50, an additional $6,000. If you have self employment income, there are more options available.
Set up your estate today
Reduce the size of your taxable estate by making gifts, up to $15,000 each as of 2019, to as many people as you want. If married and both U.S. citizens, you can gift $30,000 per recipient.