With the end of the year rapidly approaching, now is the best time to begin planning tax strategies that will make your life easier and less burdensome come April 15, 2023. The fourth quarter of 2022 is really your last opportunity to lower your tax burden, which is why now is the best time to begin working with your financial team on tax strategies.
As the leader of your financial team, you should go to your financial planner first to discuss your tax strategies. Huskey Financial Consulting can help plan tax strategies that are unique to you and your business. Contact us.
1. Time to get organized
A little organization can go a long way when it comes to tax season. Now is a great time to make sure all of your 2022 documents are accurate and in order long before the tax deadline looms. It is important to check the accuracy of your tax documents and go ahead and file them in chronological order, either digitally or in a file cabinet. That way, your tax prep will be easy for your accountant or you if you prepare your returns yourself.
Make sure you move all forms, invoices, and receipts to one location. If you are a high income individual running a small business, such as a dentist, you probably have a lot of paperwork that needs to be organized before tax season. Getting organized now will save you more than a few headaches in the coming months.
2. Plan charitable donations
Charitable donations are a great way to benefit your community and reduce your federal tax burden. Make sure that all your qualifying charitable donations are documented properly. Also, speak to your tax accountant about planning charitable donations this year that could relieve some of your tax burden next year.
3. Contribute to a retirement account
Retirement account contributions are one of the simplest ways to reduce taxable income. Contributions to a traditional 401(k) and IRA accounts can be deducted from your taxable income and reduce the amount of federal tax you owe.
It is important to schedule a meeting with your financial planner to discuss the best IRA account to create, proper contribution amount, and other retirement account strategies. Book a meeting with us here.
4. Speak to your financial planner
Inflation and market turmoil has increased expenses and lowered investment values in 2022. It is important that you speak with your financial planner about the best ways to approach your 2022 tax returns.