2022 Year-End Tax Tips Sonic Automotive

Healthcare Provider Update: Healthcare Provider for Sonic Automotive Sonic Automotive primarily offers its employees health insurance through a plan established with Aetna, which provides comprehensive healthcare coverage and plans tailored for the company's workforce needs. Potential Healthcare Cost Increases in 2026 In 2026, Sonic Automotive and its employees are likely to face significant healthcare cost increases, driven predominantly by a convergence of factors. A projected rise of 8.5% in employer-sponsored insurance costs reflects ongoing inflation in medical expenses and the staggering demands placed on health providers. Additionally, the potential expiration of enhanced ACA premium subsidies may force many employees to bear higher out-of-pocket costs. As these shifts unfold, it may become critical for Sonic Automotive to evaluate its healthcare strategies and potentially adjust its offerings to mitigate the financial impact on its workforce. Click here to learn more

'For Sonic Automotive employees, proactive tax planning strategies, like deferring income and accelerating deductions, can significantly enhance retirement readiness, and working with an advisor like Kevin Landis from The Retirement Group, a division of Wealth Enhancement Group, can help you make the most of these opportunities.'

'As the tax landscape evolves, it's crucial for Sonic Automotive employees to carefully weigh year-end moves such as contributing to retirement accounts or adjusting withholding, and an advisor like Brent Wolf from The Retirement Group, a division of Wealth Enhancement Group, can guide you in optimizing your tax strategy for long-term financial success.'

In this article we will discuss:

• 1. Tax strategies for employees and retirees of Sonic Automotive companies, including deferring income and accelerating deductions.

• 2. Charitable contributions and their impact on tax returns for individuals who itemize deductions.

• 3. The importance of required minimum distributions (RMDs) and year-end investment decisions.

• According to a recent study by the Insured Retirement Institute (IRI), a leading financial research firm, 60% of Baby Boomers plan to continue working in some capacity during retirement. This means that for many employees and retirees of Sonic Automotive companies, tax planning strategies will continue to be relevant well beyond retirement age. It is important for this demographic to consider the impact of their retirement income on their tax liabilities, as well as the tax implications of continuing to work in retirement. With that taken into account, Here are some factors for employees and retirees of Sonic Automotive companies to consider as they evaluate potential tax moves between now and the end of the year.

• 1. Defer income to next year

Consider opportunities to defer income until 2023, especially if you believe you will be in a reduced tax bracket in 2023. For instance, you may be able to defer an end-of-year bonus or delay the collection of business debts, rent, and service payments. As an employee of Sonic Automotive, doing so may allow you to defer income tax payment until the following year.

2. Accelerate deductions

Employees and retirees of Sonic Automotive should also seek opportunities to accelerate deductions into the current tax year. If you itemize deductions, paying medical expenses, qualifying interest, and state taxes before the end of the year (instead of paying them in early 2023) could affect your 2022 tax return.

3. Make deductible charitable contributions

Generally, if you are an employee of Sonic Automotive and itemize deductions on your federal income tax return, you can deduct charitable contributions up to 50% (currently increased to 60% for cash contributions to public charities), 30%, or 20% of your adjusted gross income (AGI), depending on the type of property you donate and the type of organization to which you donate. (Exceeding quantities may be carried forward for a maximum of five years.)

4. Bump up withholding to cover a tax shortfall