Cortburg Speaks Retirement

6 Ways to Minimize Your Tax Liability

January 25, 2023 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2023 Episode 120
Cortburg Speaks Retirement
6 Ways to Minimize Your Tax Liability
Show Notes Transcript

On this audio podcast episode, Miguel Gonzalez shares 6 ways to minimize your tax liability throughout the year.  

Welcome to Cortburg Speaks Retirement Podcast
with Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®




Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to potentially grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.



Good morning and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   

On this week’s audio podcast, I share 6 ways to minimize your tax liability throughout the year.

You don't need to wait until the end of the year to look for ways to minimize your tax liability. Tax planning should take place throughout the year to have you prepared well ahead of tax season. Here are six ways to minimize your tax liability that you can implement any time before the end of this year:

1. Update your payroll deductions- double check that you are claiming the correct deductions and taking advantage of pre-tax benefits that can help lower your taxable income, such as:

Flexible spending accounts (FSAs)- a health savings account (HSA), healthcare insurance, a flexible spending account (FSA), commuter benefits, and childcare expenses.

2. Maximize pre-tax retirement savings contributions- In 2022, you can contribute $20,500 to your employer's retirement savings plan. If you are aged 50 or older, you can contribute an additional $6,500 to help lower your taxable income.

Other Tax-liability Reduction Strategies

Whether you're an individual or a married couple, you can lower your taxable income while doing good for others by donating to an IRS-qualified charity. To take advantage of charitable tax deductions this year, you must make your donation before December 31st. Here are some common charitable donation strategies to consider:

3. Qualified Charitable Distributions (QCDs) - If you're age 72 or older, you can use a QCD to donate to an IRS-qualified charity of your choice directly from your IRA. The gift won't qualify for a charitable deduction but will allow you to deduct the amount transferred to the charity from your taxable income. A QCD may be helpful if you won't reach a level of itemized deductions to exceed the standard deduction amount on your taxes.


The maximum amount you may donate is $100,000 per year. If you’re married and your spouse also has an IRA, you can donate $100,000 individually, but keep in mind that each spouse must donate the same amount.


4. Donor-Advised Funds (DAFs) - DAFs enable you to donate assets to a charitable investment account and receive an immediate tax deduction. DAF contributions can be timed to coincide with high-income years to provide a larger tax deduction. DAFs grow tax-free, and you can choose which charities to distribute the gift to each year.


5. Non-Cash Charitable Contributions- You can use appreciated stock or assets you’ve held for more than a year as a non-cash charitable contribution by giving them to a charity. A non-cash charitable contribution will help save on capital gains taxes. Make sure you secure a tax deduction to prove the donation when filing your taxes. If you use this strategy, consult your financial and tax professionals to help ensure this executes properly per IRS requirements.

6. Bunch Your Donations

Bunching or concentrating your donations in one year instead of several years can help you make the most out of potential tax deductions. This strategy helps if your total itemized deductions fall below the standard deduction for a single year. By making charitable contributions for several years at one time, the total of your itemized deductions can exceed the standard deduction and offer tax benefits for one year.


Make sure to visit our website, Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Certified Retirement Counselor (CRC) and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational podcast.  



Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.

·         The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

·         This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

·         All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

·         This article was prepared by Fresh Finance. 

·         Sources: