large bonus from company sale

[Neil Ross]

My company is being acquired. I am getting a bonus of about 3/4 of my salary. I know the tax rate will be very high for the money in 2022 taxes. I am 60 years and my wife is 50 years old.

What money moves can i do to help offset my 2021 taxes with the cash? Both my wife and I have a 401K and not other investment products.

Anything i can do that will help reduce my adjusted gross income for my 2021 taxes?

Can i make a makeup payment to my wife's and my 401K and apply those funds to my 2021 taxes?

Anything else?

Thank you

[DianeW777]

There is a great article that can show ways to reduce your income by clicking here.

Also, elective deferrals to the 401(k) are generally made from money that would otherwise be included in your paycheck.  Your wife's employer plan may have limits on the amount that she is eligible to contribute per pay period.  Have her check with them.

Of course, charitable contributions could be considered if you know you are already able to itemize deductions.

• Explanation of Schedule A