It’s that time of year again. Whether you are a business owner or an individual, filing your taxes can be a daunting and stressful task. To help make the process easier, here are five year-end tax tips that can help you save money this tax season.
Save Money on Taxes With a Year-end Deferral Strategy
One of the best ways to save money on taxes is to defer your income until after the new year. This means delaying income until January 1st to reduce your taxable income for the current year.
This strategy works best for business owners who can easily delay invoicing their clients until the beginning of the new year and then collect payment in January instead of December.
Charitable Donations and Office Supplies Could Save You Big
It may sound too good to be true, but you could save some serious money before the end of the year if you are strategic about allocating your resources.
If you still need to do so, consider taking some last-minute deductions before the clock runs out – this could include making charitable donations or investing in essential business expenses.
Do you know those new pens or that stack of poster board for upcoming marketing campaigns? Those can be deductible expenses that bring down your total liability when filing taxes come springtime.
Keep careful records and receipts of every penny spent, ensuring all is properly documented when tax time sneaks up on us. For now, get ahead of the game and feel good doing by helping your favorite charity and giving yourself the best chance to make a financial impact.
It’s always possible to do good and reap the tax benefits simultaneously! To learn more about how charity initiatives and office investments can help reduce your taxable income, we suggest speaking with a tax expert, such as AA Tax and Accounting Service.
Sell Off Your Losers Before Taxes Skyrocket
Taking a proactive approach to managing your investments can make all the difference come tax time. If you’ve held onto stocks that have lost value since last year, now is the time to consider selling off those “losers” that you feel have little or no chance of regaining their value.
Doing so can help you offset potential taxable gains from earlier in 2022 and pave the way for a lower overall capital gains tax liability when the time comes to file. Plus, it could create an opportunity to invest in new positions that could capture market upside as we move into 2023.
Whatever you decide, taking control of your losses before December 31st will ensure that you’re in a better financial position come tax season.
401K, IRA, and Roth IRA Contributions Can Save You Money on Taxes
Contributing to your retirement accounts, such as 401Ks, IRAs, and Roth IRAs – is one of the best ways to save on taxes and save money. Not only will this increase your savings for when you retire later on down the road, but you’ll also benefit from potential tax savings next spring when it’s time for tax season.
And because you’re contributing sooner rather than later, there’s more time for compound interest to work in your favor!
Conclusion
Many strategies can help taxpayers save money during tax season – from deferring income to taking last-minute deductions.
Consult a qualified accountant or financial advisor to determine which strategies work best for your unique situation.
Need help with taxes?
Tax season is quickly approaching, and while it may be easy to put it off until the last minute, you’ll benefit immensely if you start planning now.
Changing regulations due to tax reform laws means that staying on top of your taxes is more critical than ever. You need help to ensure that you remain compliant and get the maximum amount of deductions for your filing.
That’s why you can start preparing for 2022 taxes with knowledgeable professionals who will provide personalized guidance by visiting AA Tax and Accounting Service. Our helpful staff can explain any changes to tax regulations and answer questions as they arise.
Whether your needs are simple or complex, AA Tax and Accounting Service is here to ensure you’re ready for the 2022 tax season. Don’t wait until the last minute—take control now!
Visit AA Tax and Accounting Service for all your 2022 tax preparation need today.
