tax time post-it on alarm clock and Individual income tax return form online

A Plan to Get Ahead of Your 2023 Taxes

In the world of taxes, time is always of the essence. As we are approaching the last few months of the year, it’s a great time to get a head start on your tax preparation and organization. If you need assistance, we can help you sort through this year’s stack of receipts, and better yet, find ways to save you money by taking actions now that you won’t otherwise be able to take at year-end.

The sooner you can get started on your upcoming taxes, the better off you will be. We created a list of a few tips to help you prepare now for your 2023 tax season.

Adjust your withholdings

Take a look at the withholdings in your paycheck to make sure you are not paying in too much, especially if you’ve had a major life change like marriage, a new job, or a baby. Those refunds are nice, but the IRS keeps your money all year interest-free, then returns it to you in a refund. If you are withholding too much federal tax, you can reduce it and apply that money to your IRA or 401K, saving more for retirement and lessening your tax burden.

Catch up on Documentation

There is no such thing as being “too well documented”, at least when it comes to the world of accounting. Find a solution that easily works for your record-keeping so you are not spending days sifting through boxes of receipts. If you are behind, October is a great time to get caught up because, at this point, you’ll have at least a little bit of leeway to address the unexpected. Deductions can reduce your tax burden and keep more money in your pocket.

Update small business information

If you own a business, make sure every aspect of your business books are entirely up to date. It makes it easier for you – and your CPA – when it’s time to file taxes. With accurate books, tax time will be a breeze instead of a paperwork nightmare. Business owners that wait until early April to “get caught up” will almost always be exposed to more accounting problems, more stress, and potential mishaps with no time to fix them.

Keep up with your investments

Look at your investment portfolio and track income losses or gains. You want to know how these investments are going to affect your tax situation. Looking at your retirement accounts in October allows time to make adjustments while getting a head start on your 2023 savings plan. Work with your CPA now to find ways to plan for it.

Plan ahead

Perhaps one of the easiest ways to plan for the upcoming tax season is to schedule an appointment with your CPA. Ask questions. Talk about your plans for major purchases such as a home, rental property or investments. Your accountant wants to reduce your tax burden as much as possible so you keep more of your money. It’s never too early to start planning for the next tax season.