Welcome back to Ned’s Blog Spot. The goal each year is to lower your tax liability and we are here to help with some useful information.
For Itemizers, there are a few things you can do to increase your itemized deductions on your taxes.
- Mortgage Interest: If you pay your January bill in December you can deduct the additional interest on your schedule A of your 2023 taxes.
- If you are not already over the $10,000 cap on your state, personal and sales tax deduction, Paying your property tax in December 2023 instead of January 2024 will increase your deduction in 2023.
- Large purchases such as Automobiles, RV’s, Home Additions and Building a home, can increase the sales tax deduction that is automatically given when Itemizing. If you are thinking of making a large purchase next year, consider how it may help you to buy in 2023 instead.
Other Deductions that can help are:
- Max out your IRA (through April 15th deadline) before you file your tax return and your 401K contributions (must be made by December 31,2023).
- If you are considering going Green, there are many tax credits that you can take advantage of. These credits include EV credits, Solar Credits, Certain types of Roof replacements and AC Units can also help you to reduce your tax liability.
Feel free to reach out to us with any questions that you may have before the end of the year.
Merry Christmas to All