Gerald Kramer
The AZ CPA
4531 N 16th St
Suite 126
Phoenix, AZ 85016
(602) 264-9331
Fax: (602) 279-1766
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Year-Round Tax/Financial Planning Could Mean More Savings:
Use a Calendar to Keep Tabs on Critical Financial and Tax Considerations
If your like most busy people, it's hard to get by without a "to do" list, especially for keeping track of important tax deadlines.
The calendar serves as a reminder of critical filing deadlines, but more importantly helps focus attention on the financial planning process which should be ongoing throughout the year.
First Quarter
General:
- Complete Form W-4, Employee's Withholding Allowance Certificate and adjust withholding, if necessary.
- Evaluate before-tax and voluntary after-tax contributions to retirement plans.
- Apply for a Social Security number for any child who does not have one.
January 15:
- Pay fourth quarter estimated tax vouchers for the preceding tax year.
- Make quarterly defined benefit Keogh contribution for the proceeding year.
January 31:
- Provide domestic employees their copies of Form W-2, Wage and Tax Statement.
February 28:
- File Form W-3, Transmittal of Wage and Tax Statements, along with Copy A of all Forms W-2 you issued for the prior calendar year.
Second Quarter
April 1:
- Comply with minimum distribution rules for qualified plans by April 1 if you attained age 70-1/2 in the previous year.
April 15:
- File individual and gift tax returns (or an application for an extension).
- File Schedule H (Form 1040) with your tax return, if you paid cash wages of $1,300 or more in 2002 to a household employee.
- Report federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2002 to household employees.
- Pay first quarter estimated tax.
- Make prior-year IRA and Coverdell Education Savings Account (formerly known as education IRAs) contributions.
- Make prior-year Keogh or SEP plan contribution (unless you applied for an extension of time to file your return).
- Make quarterly defined benefit Keogh contributions for the current year.
June 15:
- Pay second quarter estimated tax voucher.
Third Quarter
July 15:
- Make quarterly defined benefit Keogh contributions for the current year.
July 31:
- File Form 5500, Annual Report of Employee Benefit Plan, if applicable.
August 15:
- If you extended your individual tax return, file the return or file for another extension.
September 15:
- Pay third quarter estimated tax voucher.
Fourth quarter
General:
- Begin your year-end planning:
- Project current year and next year's tax liabilities.
- Evaluate the applicability of the AMT and other taxes.
- Adjust withholding, if necessary.
- Evaluate year-end capital transactions.
- Establish a separate Keogh plan for self-employment income.
- Comply with minimum distribution rules for qualified plans.
October 15:
- File individual and gift tax returns (extended at August 15).
- Make quarterly defined benefit Keogh contribution for the current year.
Throughout the Year
- Re-evaluate your long-term strategies.
- Evaluate your tax and financial strategy for receiving discretionary and mandatory retirement plan distributions.
- Rebalance your investment portfolio and re-evaluate your uses of debt.
- Consider making gifts up to the annual gift tax exclusion.
- Evaluate passive loss exposure and potential investment shifts.
- If you have excess cash flow, consider how to invest those funds.
- Consider making charitable contributions of property.
- Consider ways to fund your children's education.
- Evaluate your mix of portfolio and passive income.
- Review prior gifts to children under age 14 and their incomes to minimize the amount of income that will be taxed at your rate.
- Review the selection of your second residence and status of your vacation home.
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