Tips to Prepare for Each Tax Year

Each taxpayer’s return is unique, and you may have questions about your personal tax situation. You can always call or email your questions.

1. If you itemize your deductions:
   • Paying your property taxes before year-end could help reduce the taxable income.
   • Consider your charitable contributions and setting up, for example, a donor-advised fund, talk to your financial advisor for more details.
   • Medical expenses over 7.5% of your adjusted gross income can be included in itemized deductions.
2. To lower your capital gains on stocks, review your portfolio and consider selling stocks that are losing money.
3. Check with your HR department regarding payroll withholding for a 401K to increase the deduction.
4. You can also max out your HSA’s (Health savings accounts) to reduce the tax liability or increase a tax refund.

Tax Dates in 2024 to Remember

1. Last quarterly estimated tax payments are due January 16, 2024, for tax year 2023.
2. 1099 NEC forms to report wages for your self-employed contractors and employee W2s are due January 31, 2024 -(all information, names, addresses, social security numbers and amounts paid must be in our office by January 15, 2024, for processing time).
3. Last day for filing your personal 2023 return is April 15, 2024.
4. If you file for an extension on your personal 2023 return, the last day for filing is October 15, 2024. When filing an extension for your return you will still need to submit your payment by April 15, 2024 to avoid late fees.

Changes for the 2023 Tax Year:

After another year of tax law changes, there are significant updates for the 2022 filing season, with the possibility of a smaller refund or bigger tax bill.

1. RMD’s – required minimum distributions – need to be made by December 31, 2023. You can consult your financial advisor regarding the amount for your RMD withdrawal.
2.  Business mileage rates for 2023 are:
   •  Business miles are 65.5 cents per mile
   • Medical miles are 22 cents per mile
   • Charity miles are 14 cents per mile
3. Maximize your 401K with your employer.
4. Consider making more contributions to your HSA – health savings account.
5. Harvest losses in your stock portfolio by offsetting realized gains with losses – again consult with your financial advisor.
6. Optimize giving – if not itemizing a qualified charitable distribution (QCD) and if you are six months past your seventieth birthday you can donate up to $ 100,000 to a charity directly from your IRA – consult your financial advisor.
7. Energy improvements to homes and solar energy credits are available for 2023.
8. Energy credits for electric cars are available for 2023.
   
   

Changes for the 2024 Tax Year:

1. Energy improvements to homes and solar energy credits are available for 2024.
2. Energy credits for electric cars are available for 2024.

Keep checking back and we will post more 2024 tax updates as we get them.