1. Know your tax bracket and how much more income could be realized in order for you to remain in that bracket.
2. Monitor current-year income and deductions throughout the year for one-of-a-kind items, such as the exercise of a stock option.
3. If there’s an unusual tax item, consider a year-end tax projection to see where you are and take such corrective action as accelerating charitable contributions into the current year.
Don’t obsess over saving taxes versus developing an investment strategy. “We spend time educating our clients to understand that as income and net worth grows, so will your tax bill,” Nickolay said. “And that’s not all bad.”