More spending = higher taxes?
That seems likely with a $2 trillion American Jobs Plan (that could eventually cost trillions more) on the table to bolster America’s crumbling infrastructure and invest in R&D.1
What could those tax hikes look like? Let’s consider the possibilities.
We have a new administration in Washington, and the Democrats control the House and the Senate. So, what’s next for taxes?
We don’t know when tax laws might change but we know they will at some point. That’s what tax laws do.
Even though this may end up being a subpar year for stocks, you may realize capital gains, which is a taxable event. What can you do about them?
You can do what some investors do – you could recognize investments with a loss and practice “tax-loss harvesting.”
There are several times of the year that make you think of projects. January is for setting resolutions. Spring is for cleaning. Summer is for house projects. Fall is back to school, and then it’s the holidays. In addition to these, make tax time also a time that you set aside to remember to sit down and do a financial check-in. You are already in the process of looking over your income documents, how much you paid out for your mortgage and student loan interest, how much you paid out in child care costs, etc. Why not use this opportunity to take stock of your whole financial picture?
You did it! You finally went into business for yourself. Maybe you are a full-time freelancer or sole proprietor, or maybe you are a part-time side-hustler. Either way, welcome to the world of self-employment.
