Top 10 last-minute tax tips to consider before the end of the tax year 2023

1. Contribute to Retirement Accounts:

• Maximize contributions to your 401(k), IRA, or other retirement accounts. These contributions can lower your taxable income and increase your retirement savings.

2. Use Flexible Spending Account (FSA) Funds:

• If you have an FSA for healthcare or dependent care expenses, use any remaining funds before they expire at the end of the year.

3. Consider Charitable Donations:

• Make charitable contributions to eligible organizations to potentially qualify for deductions. Ensure you have proper documentation, such as receipts, for your donations.

4. Harvest Investment Losses:

• Review your investment portfolio and consider selling lost investments to offset capital gains. This can reduce your overall tax liability.

5. Review Health Savings Account (HSA) Contributions:

• If you have an HSA, ensure you've maxed out your contributions for the year. HSA contributions are tax-deductible, and withdrawals for qualified medical expenses are tax-free.

6. Check for Tax Credits:

• Determine if you qualify for tax credits like the Earned Income Tax Credit (EITC) or the Child Tax Credit. These can significantly reduce your tax liability.

7. Plan for Required Minimum Distributions (RMDs):

• If you're age 72 or older, make sure to take your RMDs from retirement accounts by the required deadline to avoid penalties.

8. Evaluate Your Business Expenses:

• If you're a business owner, review your business expenses and make necessary purchases before year-end to maximize deductions.

9. Review Tax Withholding:

• Ensure your tax withholding aligns with your expected tax liability. Adjust your W-4 or estimated tax payments to avoid underpayment penalties.

10. Consult a Tax Professional: - If you have complex tax situations or need assistance, consider consulting a tax professional. They can provide guidance and ensure you're taking advantage of all available tax-saving opportunities.

Remember that tax laws can change, and individual circumstances vary, so it's essential to consult with a tax advisor or CPA to tailor your tax strategy to your specific needs and stay up to date with the latest tax regulations. Don't wait until the last minute to address these tax tips; planning can help you optimize your financial situation and minimize your tax liability.