Tax day might only come once per year, but the financial decisions you make all year round can have significant impacts on your tax burden or tax return. At the end of the year in particular, there are steps that you can take to reduce what you owe.
End-of-Year Tax Tips for Businesses
As a business owner, the fact that your tax burden can have a huge effect on your overall business success shouldn’t be news to you. Managing your taxes is a crucial part of running a successful business, and that’s especially true for end-of-year tax preparations. At the end of the year, consider following the tips below to minimize what you owe:
- Complete large end-of-year investments.
- File year-end tax forms.
- Check that your last-quarter financials are caught up.
- Defer income to save on taxes for this year.
- Give to charity to bring down your tax burden.
- Identify unusable inventory for deductions.
- Check on retirement plans.
- Complete any needed office repairs or updates to be deducted.
- Identify uncollectible debts for deductions.
Keep in mind that not every tip will apply or be the best choice for every business. To learn more about the steps you should be taking to prepare for the year ahead, reach out to a qualified Weslaco CPA.
End-of-Year Tax Tips for Individual Filers
As an employed individual filer, you might think that there’s nothing you can do to increase your tax return when tax day comes. Self-employed filers, on the other hand, know that there are plenty of steps they can take to minimize their burden. Whether you’re employed by someone else or work for yourself, you can follow the tips below to maximize what you’re owed.
- Use up your flexible spending account funds.
- Verify that the correct amount has been withheld from your paychecks.
- Max out your contributions to health savings and retirement accounts for deduction.
- Tax-loss harvest by selling investments at a loss to reduce capital gains tax.
- Group your deductible expenses so you can reach the minimum threshold.
- For those 73 and older, collect your minimum distributions from your retirement plan.
For some self-employed filers, it may make sense to also follow some of the tax tips from the section for businesses, but this will vary from person to person. To learn what steps you can take as an individual filer to maximize your return, get in touch with a Weslaco CPA.
Maximize Your Return and Minimize Tax Burdens With Gonzalez & Arrambide
For most of us, tax day is a stressful time full of uncertainty. However, it doesn’t have to be. With help from a Weslaco CPA, you can ensure that your finances are in great shape before the year ends.
If you want to make sure that your tax day 2024 is as painless as possible, reach out to the experienced Weslaco CPAs at Gonzalez & Arrambide, Inc. We can help you get your finances in order and prepare for the year ahead.