Time to get your ducks in a row!
It's December!! That time of year when you realize the last time you downloaded your statements, reconciled your checking account or filed your receipts was in July. Ack! But it's not too late! Here are five things to do in the next few weeks that will save you some headache when tax time rolls around.
For all of you freelancers, solo-prenuers or business owners, consider paying your Q4 estimated State taxes before December 31st. If you pay before December 31st, you can take those taxes as a deduction on your 2023 Federal tax return.
Gather all of your credit card statements (no need to get the highlighter out yet, but let's get prepared!).
Maximize your retirement contributions. The max for 2023 contributions to 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is $22,500, $6,500 for an IRA. People over 50 can contribute an additional $7,500 to their 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan as well.
Review your FSA accounts and if you have remaining funds, spend them - tons of options available at the FSAStore.com.
Fill out a new W-4 for 2024 if your financial situation has changed (children, divorce, etc.) or you believe you have not had enough taxes withheld in 2023.
BONUS - it's not too late to save on your taxes - if you itemize, take all those clothes, books, household items you don't need anymore to your local ARC or other drop-off, and Viola! A deduction.
About the author
In addition to being a good friend and trusted colleague of mine, Julie Fleischhacker has been supporting individuals and small businesses for over 20 years, providing accounting, project management and business consultation.
If you have additional questions or would like to schedule a call, please visit her website - www.jmfvaservices.com and reach out via the About Me page.