As you approach the year’s end, it’s so important to consider ALL potential tax strategies to optimize your financial situation. Here are some considerations to guide your decisions:

estate tax

  1. Defer Income to 2024: Consider all opportunities to defer income to 2024, especially if you anticipate being in a lower tax bracket. Ideas: postpone receipt of a year-end bonus or delaying the collection of business debts, rents, and service payments can allow you to defer tax payments on that income until the following year.
  2. Accelerate Deductions: If you itemize deductions, consider accelerating deductible expenses into the current tax year. Making payments for qualifying interest, state taxes, and medical expenses before year-end, rather than in early 2024, can impact your 2023 return positively.
  3. Give to Charities: If you itemize deductions, take advantage of deductible charitable contributions. Keep in mind the limitations based on the type of property and the organization you contribute to. Excess amounts can be carried over for up to five years.
  4. Bump Up Withholding to Cover Tax Shortfall: If it appears you’ll owe federal income tax for the year, consider increasing withholding on Form W-4 to cover the shortfall. This strategy helps distribute withholding evenly throughout the year, potentially compensating for low or missed quarterly estimated tax payments.
  5. Save More for Retirement: Contribute to a traditional IRA and employer-sponsored retirement plans to reduce your 2023 taxable income. Ensure you maximize contributions before the year-end deadlines for employer plans and the April 15, 2024, deadline for IRA contributions. I want to help you here!
  6. Take Required Minimum Distributions (RMDs): If you’re 73 or older, adhere to the RMD requirement for traditional IRAs and employer-sponsored retirement plans. Failure to do so incurs substantial penalties. Note special rules if you’re still working and participating in an employer’s retirement plan.
  7. Weigh Year-End Investment Moves: While tax considerations shouldn’t solely drive investment decisions, it’s prudent to assess the tax implications of year-end moves. For instance, offset realized capital gains by selling losing positions, with excess losses potentially reducing ordinary income or carried forward for future tax benefits.

Book a free consultation today to learn more.


This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional


For Public Use – Tracking #1-512760