Looking for any last minute moves I might wanna make to reduce tax burden or improve tax burden for 2026.
Salary: approx 140k, switched jobs around May to one that makes more (140k vs 110k) set deductions to 0 when I took that job.
I had around 700 shares of stock I inherited from my mother when she passed a few years ago. Was worth around 70/share at inheritance. Sold them all this year at average price of $120. Morgan Stanley withheld the taxes for those sales.
I’ve a rental property for a few years now. After paying for the mortgage payment, insurance and upkeep (yard work and the occasional repair) I only clear a couple hundred monthly from it. We’ll say 2400/year.
I have a BDA retirement IRA that was my mothers which I take required disbursements from. Last year I took more than the minimum and used it to max my Roth IRA contribution. I also have a brokerage account with 70k and a HYSA with about 75k in them, both with Vanguard.
I live with my fiancée and we own our primary residence together, payments of $2800/mon. We’re getting married in Feb, but guessing we’ll be better off filing separately since she makes around $110k.
Any obvious immediate moves I could make to lighten my tax load for 2025 or help next year from 2026?
Thanks!
Posted by Plenty_Union9292
5 Comments
Max your 401k if you have one (it’s almost certainly too late for 2025 but you should for next year ).
Any necessary expenses for the rental you can pay in the next week? (Though a net loss won’t help you offset other income).
Realize any capital losses in the brokerage if you have any.
Filing separately is almost never better than filing jointly (it’s worse than being single). You might save a bit of money if you had a courthouse wedding this week, or you might not.
Estimate your actual taxes for this year and compare to your withholdings. You are probably OK, but it’s possible you under withheld in which case you should make an estimated payment ASAP to reduce penalties.
What makes you think you’ll be better off filing separately? For most couples MFJ almost always makes more sense
Was your inherited stock on an inherited Ira? We don’t withhold taxes on non Ira accounts.
Do you have any losses from positions in non Ira accounts? Maybe take the losses.
> We’re getting married in Feb, but guessing we’ll be better off filing separately since she makes around $110k.
First, for 2025, obviously you have to file as Single, (not “separately” which would mean you were married).
Second, for 2026, you almost certainly will want to file jointly, not separately.
> Morgan Stanley withheld the taxes for those sales.
That is very unlikely.