Year-End Tax Planning Tips for Individuals and Small Business
Tax day might only come once per year, but tax planning is a year-round gig. Whether you’re a business owner or an individual filer, you should consider taking steps to improve your tax outlook for the coming year.
Keep reading to find year-end tax tips for businesses and individuals from your McAllen CPA, Abigail Y. Murray.
Year-End Tax Tips for Individuals
Filing taxes as an individual might be less complicated than filing as a business, but that doesn’t make it simple. As the year comes to an end, make sure you’re prepared for the coming tax day by following these tips before December 31:
- Check that the correct amount has been withheld from your paychecks
- Max out contributions on retirement and health savings accounts to reduce your tax burden
- Consider grouping your deductible expenses to increase the likelihood you reach the minimum threshold
- Spend any funds remaining in your flexible spending account
- Consider selling investments at a loss to reduce your capital gains tax, also known as tax-loss harvesting
- If you’re 73 or older, take your required minimum distributions from your retirement plan
Keep in mind that not all of the tips above will apply to every filer, and there may be other steps that you can take. Learn what you should do at the end of 2023 to get ready for the next year from a McAllen CPA.
Year-End Tax Tips for Small Businesses
As a business owner, you know that taxes play a huge role in your ability to thrive and grow. Year-end tax preparations are essential for running a business, but you might not know where to start. Check out the list of year-end tax tips for businesses below, and consider hiring a CPA to help with your tax planning:
- Make sure your last quarter financials are caught up
- Check for unusable inventory to be deducted
- Identify uncollectable debts to be deducted
- Make any needed office repairs and updates for deduction
- Donate to charity to reduce your tax burden
- File end-of-year tax forms
- Defer income to save on the current year’s taxes
- Check on your retirement plans
- Make any large end-of-year investments
Get help following the tips above and preparing your business for the coming year from a McAllen CPA.
Minimize Your Tax Burden With Abigail Y. Murray’s Tax Planning Services
Tax day can be a great day for some and a painful time for others. As this year comes to a close, do what you can to reduce your tax burden and maximize your deductions by reaching out to a CPA for help. Make smart choices with your finances to get ready for the coming year.
Whether you own a business or are an individual tax filer, year-end tax planning can play a huge role in what you’ll owe when tax day arrives. Get help from McAllen tax expert, Abigail Young Murray, CPA, PLLC, to make sure Tax Day 2024 is as painless as possible.