Happy New Year to all! β€
Whether you’re taking a well-deserved break or you’ve already got your New Year’s resolutions in gear, taxes may be on your mind.
You should already have an idea of what you will have to pay on tax day. If you don’t have it and don’t want to be unpleasantly surprised, consult a tax expert soon…
π But did you know that there are still some things you can do before tax day? For your benefit and your tax advisor’s sake, you need to do them as soon as possible, because they can reduce your bill:
- The first is to contribute to an HSA or Traditional IRA, since even though it’s 2024, you can still make contributions for 2023 through April 15.
- You can also continue to make contributions to Roth IRAs until then as well, but Roth IRAs don’t reduce your tax liability, while HSAs and Traditional IRAs do.
- By 2023, you can contribute up to $3,850 to an HSA and $6,500 to a Traditional IRA.
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π On the other hand, if you’re self-employed, you’re not eligible for these accounts, but you have others with which you can save some taxes:
- You can consider Solo 401(k)s or SEP IRAs, and the best thing about these accounts is that you’re not limited by tax day, and you can make contributions that reduce your taxes from 2022 until tax extension day (Oct. 15, or Sept. 15 for S-Corps).
- These also have a much higher maximum contribution than HSAs or Traditional IRAs, as the limit for 2023 is $66,000.
π So, they are a great way to reduce your bill at the last minute.
π Need help getting ready or want help getting off to a great start this 2024?
π At Wave Tax we can give you advice on everything related to you and your companyβs taxes. Contact us at info@wavetax.us