Tax Savings Strategies

The next month or so is the time to get your documents in order and make sure you have all the information you and your accountant will need to file taxes for 2023. I want to help you make the most of your opportunities and lower your taxes wherever possible.

What can you do now? We have put together a process that you can follow to assist your tax planning.

Step One in Tax Planning

Here is a checklist of information to gather. Once it is organized, you can review the list with your financial advisor or financial planning team.

• Find your wages for 2023 or your most recent paycheck stub.
• If you own an S Corp or LLC, estimate your 2023 profit (if not yet finalized) or find a recent Profit & Loss report.
• If you are a sole proprietor, estimate or confirm your income and expenses for 2023.
• Obtain your 2023 interest earned on bank accounts.
• Obtain your 2023 dividends for taxable accounts.
• Obtain cost basis and sale price information for any real estate or businesses sold in 2023.
• Obtain cost basis and sale price information for taxable accounts in 2023.
• Obtain the amount of any tax loss carry-forwards from 2022 from your tax return.
• Make a list of all charitable donations you have made in 2023.
• Provide your financial advisor a copy of your 2022 tax returns.

The good news for tax savings is inflation was high in 2022. As a result, all of the tax brackets, deduction limits, income thresholds, etc. were adjusted significantly higher for 2023. This could create more opportunity for tax savings:

• The tax brackets became wider, since the upper limit was increased for inflation.
• The capital gain tax thresholds also became wider as the upper limits were increased.
• The standard deduction jumped higher (good for persons who don’t itemize).
• Retirement plan contributions limits had a nice bump up from 2022 levels.
• Health Savings Account (“HSA”) contribution limits increased.

Step Two in Tax Planning

A good retirement plan comes with a myriad of decisions to make, most of which are incremental and accumulate over time.

Here is a checklist of questions to ask yourself and data to gather for review with your financial advisor.

I understand that you are busy, and the list looks daunting. However, the time you spend now could provide a better retirement (and some tax savings) later. 

• Are you on pace to contribute the full $22,500 to your 401(k) plan?
• Are you on pace to contribute the full $7,500 catch-up amount to your 401(k) plan?
• Will you be eligible for a ROTH Conversion?
• Are you on pace to fully fund your HSA? ($3,850 single, $7,750 family)
• Are you on pace to contribute the full $1,000 catch-up amount to your HSA?

2024 Tax Planning Brochure

Click the button below to download the complimentary brochure “2024 Tax Savings” for more year-end tax savings and tips for planning for 2024!

Download Now

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About the Author

Jack Brkich III, is the president and founder of JMB Financial Managers. A CERTIFIED FINANCIAL PLANNER ^TM, Jack is a trusted advisor and resource for business owners, individuals, and families. His advice about wealth creation and preservation techniques have appeared in publications including The Los Angeles Times, NASDAQ, Investopedia, and The Wall Street Journal. To learn more visit https://www.jmbfinmgrs.com/.

Connect with Jack on LinkedIn or follow him on Twitter.