top of page

3 Things to Remember this Tax Season

People often have a viscerally negative reaction to taxes.


It makes sense - you worked hard for your money, and taxes take some of that hard-earned cash away. Not only that, but they’re COMPLICATED! 


With that in mind, I wanted to put together a list to help make tax season a little less terrible this year.


Life in Taxes

Accountants are busy this time of year. Some of them will rely on you to give them the information they need to make sure they file your return correctly, and without leaving money on the table.


Did you have a baby this year? Start saving for college or retirement? Switch banks? Install a new furnace or buy an electric vehicle? These are all things that could impact your tax return. 


Think back on the past year specifically about what has changed or what happened this year that your accountant might want to know about. Most won’t push back about having too much information because it’s fairly easy to sift through what matters and what doesn’t.


Deductions and Credits

A deduction lowers the amount of income that you pay taxes on, and a credit lowers the amount of taxes you actually pay. 


All of the following could provide deductions or credits, depending on your situation and what state you live in:

  • Retirement savings contributions

  • Health Savings Account (HSA) contributions

  • College savings contributions

  • Mortgage interest paid

  • Student loan interest paid

  • Property taxes paid

  • Medical spending

  • Charitable giving


Time Travel

There are some things you can do for tax year 2023 as long as they’re done before the tax filing deadline


If you’re trying to maximize your lifetime tax savings, you should probably wait until after your tax return is just about finished to determine whether you want to make a pre-tax or Roth IRA contribution for any given year. This is really the only way to make sure you’re getting deductions in the years you need them, and not in the years when you don’t need them. 


Thankfully, IRAs (both Roth and pre-tax) are one of those accounts that allow you to make contributions after year-end, up to the tax filing deadline. Other accounts like this include HSAs and 529 plans in some states. Make sure your accountant knows if you’re looking for these opportunities, so they can help advise which ones make sense for you before they file your return.


Conclusion

You don’t need to know everything about taxes, but it is important that you provide your tax preparer with what they need to help you. If you’re looking for someone to prepare your taxes for you this year, I’d be happy to help by either doing them myself or connecting you with a good accountant to help you out. Just go to PreeceFP.com/Contact and send me an email.

 

As always, keep in mind that you don't have to go it alone. Check out my website to see what it's like to work with me and reach out if you have any questions.


If you found this post helpful, help spread the word! Share with friends and family that you think may benefit as well. But remember, this is solely for educational purposes - it's not advice.

16 views0 comments

Recent Posts

See All

Traditional or Roth - Which is Better?

Here's the REALLY short answer: It depends. Less short answer: If you expect your tax rate to be higher when you use the funds, you should probably contribute to a Roth. But if you expect your tax rat

3 Common Misconceptions about US Federal Income Taxes

Taxes are like death. Or death is taxes. Something something… Unavoidable! Oh, I can’t remember the saying, but you catch my drift. Not only are taxes inevitable, they can be really confusing. That’s

Comments


bottom of page