What are the ramifications of disregarding the lists and enjoying the holidays instead? What is the worst thing that can happen?
After all, some items on those to-do lists might not apply to your situation. There could be some rule changes that make old end-of-year planning moves obsolete. Also, worrying over smaller tasks right now might not be worth it. Here is a brief analysis that, hopefully, can save you time and effort over the next couple of weeks.Actually, estimated tax payments are not due until Jan. 15.
Even if you have paid estimated taxes in the past or if your income increased dramatically in 2022, you still might not have to pay as long as your withholding and estimates equaled or exceeded 100% of your tax liability, as shown on your 2021 tax returns. While maximizing your contributions is generally wise, sometimes, contributing additional funds last minute to your 401k might actually cost you in the long run.If you do not have sufficient regular savings for emergencies, you might need the money you contributed now in the future and would have to withdraw from the plan and pay taxes and penalties on the withdrawal. Make sure your retirement contributions fit into your overall financial plan.
Since it is so difficult to buy gifts for young adult family members, one task I would encourage you to do, if your finances allow it, is to give cash gifts. Gifts are not deductible to the giver and not taxable to the recipient, so it does not matter if you make the gift this year or next year.