5 Tax Moves Phillips 66 Employees Should Make Before Year-End

Healthcare Provider Update: Healthcare Provider for Phillips 66 Phillips 66 offers healthcare coverage through multiple providers, primarily Aetna and Blue Cross Blue Shield (BCBS), depending on the employee's home ZIP code. Employees also have access to a Kaiser HMO option if they live in designated areas of California or Washington. The medical plans include comprehensive coverage for various healthcare services, including preventive care, regular checkups, mental health, and substance use disorder treatments. Potential Healthcare Cost Increases in 2026 Healthcare costs for Phillips 66 employees can be expected to rise significantly in 2026, reflecting broader trends impacting the Affordable Care Act (ACA) marketplace. As major insurers are filing for rate increases that may exceed 60% in certain states, Phillips 66 employees could face steep hikes in out-of-pocket premiums, especially if federal subsidies are not extended. The combination of escalating medical costs and the potential loss of enhanced subsidies means many employees may see their premium costs increase substantially, leaving them with difficult choices regarding their healthcare coverage amidst these changing economic conditions. Click here to learn more

Phillips 66 employees can maximize year-end planning by using credit card usage for deductible expenses and charitable donations that provide immediate tax benefits and long-term financial security, 'said Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement Group.

Adjusting withholdings, using IRA strategies and Qualified Charitable Distributions can help Phillips 66 employees avoid penalties and achieve a comfortable retirement, said Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article we will discuss:

1. Strategies to optimize Phillips 66 financial planning before the year ends.

2. Tax-saving ideas: strategic credit card use & charitable donations.

3. Techniques for long-term financial security - IRA borrowing and Social Security planning.

When it comes to Phillips 66 financial planning, implement strategies to optimize your fiscal health as the year winds down. This article details novel strategies to consider before December 31st to improve financial position with Phillips 66.

Use of Strategic Phillips 66 Credit Cards.

Contrary to the conventional advice to cut back on credit card use, a prudent strategy involves using them to pay for deductible expenses. The tax benefit occurs on the date of charge, not on payment. That's especially useful for tax-deductible expenditures like real estate taxes and philanthropic contributions, provided they remain below USD 10,000. By following a monthly balance payment schedule, this approach maximizes tax deductions and takes advantage of credit card points without paying interest.

Charitable Contributions Through Decluttering

Often overlooked is getting Phillips 66 tax deductions for donating old personal items. And it's a tax benefit too. It involves recording the donated items, getting a receipt and ensuring the total worth is not more than USD 5,000, to avoid an appraisal. The deduction is equal to the current value of the item or its original price, whichever is less.

Adjusting Withholdings

Phillips 66 employees with supplemental income sources like side work must adjust their tax withholdings to avoid penalties. In increasing penalties for underpayment to 8%, the Internal Revenue Service stresses the need to pay at least 90% of an annual tax obligation by year's end. Withholdings are considered to have been uniformly applied throughout the year so one could potentially avoid such penalties by strategically enhancing withholdings near the end of the year.

Property Tax Payment Strategy

A USD 10,000 cap on state and local tax deductions and current interest rates over 5% on savings accounts have reduced the financial appeal of prepaying property taxes. Keep consistent payment schedules to maximize interest earned on savings accounts.

Use IRA for Short Term Liquidity.

When pressed for cash, borrowing from an IRA may be the smart move. That means repaying the borrowed funds within sixty days and only once every twelve months. Conforming to these regulations carries no penalty or tax.

Integrating Traditional End-of-Year Financial Moves.

These suggestions offer new perspectives, but should be used in addition to conventional end-of-year financial procedures rather than in place of them. The above strategies include grouping itemized deductions, optimizing contributions to Phillips 66 retirement accounts, maximizing medical savings accounts, evaluating Roth conversions, establishing donor-advised funds and capital loss harvesting.

Remember these recommendations should be considered supplements to your full Phillips 66 financial plan. You should consult a Certified Public Accountant (CPA) to tailor these recommendations for your specific financial situation. With the end of the year approaching, proactive financial planning measures may provide significant long-and short-term benefits.

Persons approaching or retiring from Phillips 66 - especially those around age 60 - need to understand Social Security benefits in terms of tax planning. Knowing when to start getting Social Security benefits is critical. Beneficiaries with large retirement accounts or other sources of income could see a big boost in their monthly benefit by delaying SS start age 70. This can maximize tax efficiency and long term financial stability. Postponing benefits until full retirement age of 70 produces an estimated 8% increase in benefits annually, according to a report from the Social Security Administration in 2021.

Year-end tax planning is like preparing a garden for winter. In the same way an arboriculturist trims excess vegetation, prunes undesirable plants and urban gardens late-season harvest crops, retirees should also carefully prune taxable income, trim unnecessary expenditures and sow the seeds of future financial development. By applying the credit cards toward deductible expenses, one prunes the tree for better growth the following year. Donating unused items is like pulling vegetation; It takes away unnecessary things and adds to the charitable soil. Strategic cash flow management through IRA adjustments, deferring property tax prepayments and manipulating withholdings is like sowing winter crops; They require some anticipation of seasonal changes, but provide for a good harvest of savings and financial security in retirement.

Added Fact:

In addition to the strategies above, Phillips 66 employees can take advantage of a qualified Charitable distribution (QCD) option in their IRA - For those age 70 1/2 or older - that allows direct transfers of up to USD 100,000 per year to a qualified charity without the Distribution being taxable income. That move meets the year's Required Minimum Distribution (RMD) and may lower the retiree's income tax bracket, but also supports charitable causes without affecting the taxpayer's adjusted gross income. This strategy, which can be useful to retirees looking for tax-efficient ways to give to charity, was highlighted in IRS guidelines for 2021, highlighting its value in retirement and tax planning.

Added Analogy:

An experienced captain navigating year-end tax planning for Phillips 66 employees is like navigating the maze of retirement. So just as a captain uses charts, compasses and the stars to navigate, employees must use strategic tax moves to steer their financial ship toward retirement success. Use credit card strategies for deductible expenses like sailing with a good wind that blows the ship forward. Donating unused items suggests shedding unnecessary pounds for speed and agility.

It's like tuning the course of a vessel by changing withholdings and managing property taxes. Borrowing from an IRA for liquidity is like having a reserve tank of fuel for those moments of need. As a captain might use such tools alongside more conventional navigation methods, so too can using such tax strategies alongside more traditional financial planning deliver a smooth ride toward financial security and a comfortable retirement. With each move comes a little adjustment to the sails so retirees and those approaching retirement can move into the next chapter confidently and safely.

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Sources:

1. J.P. Morgan Private Bank. '5 Tax Planning Actions to Take Before Year-End.'  J.P. Morgan Private Bank , October 2024, pp. 1-3.

2. SmartAsset. 'Retirement Tax Strategies to Consider.'  SmartAsset , December 2024, pp. 2-4.

3. Ed Slott and Company, LLC. 'Using Your IRA for a Short-Term Loan.'  Ed Slott and Company , May 2024, pp. 1-2.

4. Fortune. 'Tax Tips for HENRYs: 5 End-of-Year Moves if You Are High Earner Not Yet Rich.'  Fortune , November 2024, pp. 1-2.

5. Yahoo Finance. '4 Ways to Save on Taxes in Retirement.'  Yahoo Finance , February 2025, pp. 1-3.