“You don’t pay taxes. They take taxes.” – Chris Rock
I hate to admit it, but I crammed for tests. Of course, my mom and everyone else told me to study consistently.
Tax planning is the same way. You can do some things now to help, but it is best to do many things throughout the year.
If you want to reduce your tax bill before filing your tax return, here is a checklist to help you get started.
- Fully fund your Individual Retirement Account (IRA) for 2022. If you are eligible, contributing to a traditional IRA can reduce your taxes by giving you a deduction. For 2022, IRA contribution limits are $6000 and $7000 if you are over 50. Keep in mind that a ROTH IRA contribution may be better for you. Check with your financial advisor or CPA which is best for you.
- Did you fully fund your 401k for 2022? Check your pay stub. For 2023, you can put up to $22,500. If you are over 50 years old, you can add another $7500. Set up contributions to fund as much as you can.
- Fund a Health Savings Account (HSA)– If you have a high deductible health care plan, you may be eligible to contribute to an HSA. HSA contributions are tax-deductible, and the funds can be used tax-free to pay for qualified medical expenses. For 2022, the contribution limit for individuals is $3,650, and for families is $7,300.
- Spousal IRA– A nonworking spouse can still contribute to their IRA. This is called a Spousal IRA, the most often missed retirement account contribution.
- Big refund means a big tax-free loan to IRS. If you get a big refund consistently, consider adjusting your tax withholdings.
Let me know if you have any questions. Please email me at
Je****@Ri*********.com
or CLICK HERE to schedule a phone appointment.
On the lighter side, I won about 50% of the chess matches against Elliott this weekend—a dramatic improvement. I enjoy playing with him.
I hope all is well with you and your family,
Jeremy
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
