What can you do this week?

Review your tax deduction and credit claiming options before filing your 2023 taxes. This list is a helpful start:

To learn more about comprehensive planning or coaching engagements available, checkout my website and schedule a call.

The below tactics are worth exploring when you file 2023 taxes. Check the eligibility and qualification links below:

1. Health Savings Account: If covered by a high deductible health plan, contribute until 4/15/24.

   1. 2023 the maximum contributions are $3,850 for individuals and $7,750 for families.

   2. If you are 55 or older, you can add up to $1,000 more as a catch-up contribution.5

   3. HSAs have no use-it-or-lose-it provision. Any funds still in the plan at the end of the year can be rolled over indefinitely.1

2. Child Tax Credit: Available for qualifying dependents under a certain age. How much is the 2024 child tax credit?

   The maximum tax credit available per child is $2,000 for each child under 17 on Dec. 31, 2023. Only a portion is refundable this year, up to $1,600 per child. Check qualifications here.

3. Earned Income Tax Credit (EITC): Designed to assist low to moderate-income earners. Check qualifications here.

4. Education Credits: Includes the American Opportunity Credit and the Lifetime Learning Credit.

5. Child and Dependent Care Credit: For expenses related to child or dependent care services, learn more here.

Tax and Strategy 101

• Tax payers can either take the standard deduction or itemize.

• For many filers, the standard deduction will be larger than their potential itemized deductions.

• The advantage with itemizing is that if you have enough items to deduct that the total is larger than the standard deduction, your taxable income will be lower, you pay less taxes.

• Standard Deduction: Check the standard deduction amount for your filing status here.

• Itemized Deductions: This may include deductions for medical expenses, state and local taxes, mortgage interest, and charitable contributions.

• Deductions are usually the default thought among tax payers as a way to reduce taxes.

• While deductions help, tax credits are more impactful in reducing your taxes paid

• Tax credits reduce your amount due vs. reducing the income amount you’re taxed on.

If you’re not a subscriber already, hit that button below to receive new tactics each week to help you grow income, reduce expenses, and save more now!

If you know others who would benefit from this content, please share the newsletter URL link on your social channels!!