Get Ahead of the Game: 2023 Tax Planning Tips for Businesses and Individuals

Tax season can be a stressful time for both individuals and businesses. To help make the 2024 tax year less painful and more fruitful, it's important to plan ahead and stay organized. In this blog, we will provide some tips to help you prepare for the next tax season. From updating your address and withholdings to planning your retirement account withdrawals, these tips will help you maximize your tax savings and avoid any headaches come tax season. So, whether you're a business owner or an individual taxpayer, read on for some helpful tips to make the 2024 tax year a success.

1. Update Your Address and Withholdings: One common mistake that taxpayers make is not updating their address with the IRS, which can lead to missed deadlines and penalties. Additionally, incorrect withholdings can lead to a large tax bill or a smaller refund. Make sure to update your address and review your withholdings for the year.

2. Plan Your Retirement Account Withdrawals: When taking money out of any retirement account, it's important to consider your tax obligations. Retirement account companies usually only withhold 10% for taxes, but this may not be enough to cover your full tax liability. Be sure to plan ahead and set aside enough money to cover your tax obligations.

3. Stay up-to-date with Changing Tax Brackets: Tax brackets change from year to year, so it's important to stay up-to-date with the latest changes. This will help you plan your income and deductions accordingly.

4. Expenses for W2 Employees: As of 2017, W2 employees can no longer deduct expenses for office equipment. However, there are still some expenses that W2 employees can deduct, such as work-related travel expenses, professional development courses, and job search expenses (if you're looking for a new job in the same field).

5. Proper Business Structure: It's important to ensure proper structure for your business, which can get complicated. Connecting with an experienced accountant or business advisor can help you choose the right structure for your business and ensure compliance with tax laws.

These are just a few tips that can help your clients have a less painful or more fruitful 2024 tax year. By staying organized, planning ahead, and seeking expert advice, your clients can save time, money, and stress when it comes to their taxes.