Wednesday, January 4, 2023

Kick-Start Your Tax Planning For 2023

 

Let’s face it — tax planning can be overwhelming! Between changing tax laws to deductions, it’s hard to know where to start. But with proper planning, you can maximize the amount of money you get back and save more for your future.

Here are three key strategies to consider when kick-starting your tax planning for 2023:

Determine Your Tax Bracket

Knowing which tax bracket you’re in is one of the most important steps in tax planning. Your income level will determine what types of deductions, credits, and other tax breaks you may qualify for. Knowing your income level will also help you plan accordingly if you need to make changes, such as increasing your 401(k) contributions or deferring income until next year to avoid a higher tax bracket.
 

Know The Difference Between Tax Credits and Tax Deductions

Understanding the difference between a credit and a deduction regarding taxes is important. A credit is an amount directly subtracted from your total tax bill, while a deduction reduces your taxable income by reducing the amount subject to taxes. For example, if you have $10,000 in deductions on your taxes, then only $9,000 would be taxed instead of the full $10,000. Knowing which credits and deductions are available to you can help keep more money in your pocket come tax time.
 

Utilize All Available Methods To Cut Your Tax Bill

There are many ways to reduce your total tax bill, including taking advantage of available credits and deductions as mentioned above as well as contributing to retirement accounts like IRAs and 401(k)s which can offer major tax savings over time. Additionally, you can consider applying today for a property tax grievance!

Our team is here to take the weight of your property taxes off your shoulders.
 

Ready to Save Money?

You count on one of the leaders in property tax challenges! For decades, Property Tax Reduction Consultants on Long Island has strived to minimize clients’ property tax assessment with personalized service. Customer service is our number one priority.

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