Have a Tax Question? Ask a Tax Expert
Hi. My name is ***** ***** I will be happy to help you.
501 college savings contribution is not tax deductible and will not reduce your taxable income. Your total income is too high for IRA contribution so your options are maximizing your 401K (check with your employer - benefit department) or HSA if you qualify ( you have to have high deductible medical insurance plan). In addition if you itemize your deductions you can prepay your January mortgage (pay in December) and prepay your next year property taxes. You can also increase your charitable donations or if you have some under-performing investment, now would be a good time to sell. In you tax bracket there are not many opportunities to reduce your taxable income in the next 3 month.
What are you selling? Would the buyer consider an installment agreement, maybe?
Maximum contribution to 401K is 18K, 24K if you are 50+. Maximum contribution to HSA is $6750 for a family plan. $5200 (mortgage interest and property taxes) is not enough to itemize your deduction but if you include your state taxes, you may have enough to itemize. If you sell an underperforming investment with a loss, the loss (up to 3K) will reduce, not increase you income.
In 28% tax bracket, every $1000 deduction will reduce your tax liability by $280.
Yes, but you will need to check with the plan administrators if your plan allows lump sump contributions.
There are several online calculators but none of them is perfect and none of them will account for 401K or HSA contribution. You will have to improvise and reduce your salary by the contributions instead.
If you want a relatively accurate result you will need an access to a professional tax preparation software used by CPAs or other tax professionals. The retail versions like turbo tax will not be released until late December.
Yes, there are some CPAs here who has access to current professional software but I do not know what would be their fees. Let me opt out and allow another expert send you an proposal.