Keep these tax tips in mind when constructing or revisiting your financial strategy.
1) Search for State and Local Tax Breaks
Have you looked into tax breaks in your state or locality? Regional and local tax incentives, credits, and refunds can help reduce your tax burden.
Even though reformed tax laws removed miscellaneous write-offs, some states still make them available, or they might have a lesser amount for claiming them.
2) Donate Stock to Reduce Capital Gains
You can prevent capital gains by donating or gifting stocks you hold to qualified charitable organizations. Money that is placed in a donor-advised fund is exempt from capital gains taxes and you might be able to deduct capital gains taxes if you itemize your expenses.
3) Cost-Basis Adjustments for Capital Gains Tax Savings
When you calculate the cost basis of a financial asset you aim to sell, include the reinvested dividends in your calculation. This could increase your cost basis and minimize the amount of capital gain when you sell the investment.
If you plan to sell a house, you might be liable to pay capital gains tax if the house has increased in value. However, there are also tax credits for selling a primary residence. The Internal Revenue Service permits the exemption just once in two years.
4) See if You Qualify for an Earned Income Tax Credit
Even if you are not obligated to pay federal tax, you could still get a refund from the government. For the tax year 2023, the government offers the Earned Income Tax Credit (EITC), which is a refundable tax credit that can be up to $7,430. EITC is calculated using an equation that considers the taxpayer’s income and family size.
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Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter.