As we approach the end of 2024, now is the perfect time to prepare for year-end tax planning and ensure you’re meeting all important deadlines. In this edition, we’ll cover tips to optimize your financial outcomes and navigate the upcoming tax deadlines.
1. Year-End Tax Planning Tips and Strategies
Organize Your Financial Records:
Make sure all income statements, receipts, and important financial documents are in order. Proper organization will make the tax filing process smoother and help identify deductions.
Maximize Retirement Contributions:
Consider contributing the maximum allowable amount to your IRA or 401(k) by the year’s end. These contributions can lower your taxable income and set you up for retirement success.
Stay Informed About Tax Law Changes or Losses:
Legislative updates can affect your tax situation. Stay updated on any changes that might impact your tax filing. New credits or deductions may have been introduced in 2024. If you’ve experienced losses on investments, now may be a good time to sell and offset any capital gains, potentially lowering your overall tax burden.
Charitable Contributions:
Giving to charity can not only help those in need but also offer tax benefits. Be sure to keep receipts and donate to qualifying organizations.
Review Estate Plans:
If you’ve had major life changes this year, such as marriage or the birth of a child, it’s a good time to review your estate planning documents.
Explore Available Tax Credits:
Look into credits such as the Earned Income Tax Credit or educational tax credits that could increase your refund or reduce the amount you owe.
2. Key Tax Deadline to Keep in Mind
October 15, 2024, is the deadline to file your extended 2023 tax return. If you filed for an extension back in April, make sure you meet this deadline to avoid penalties. November 15, 2024, is the deadline for Form 990 extensions.
3. Filing Penalty Details
Failing to meet these deadlines can lead to penalties, including 5% of unpaid taxes for each month you’re late in filing (up to 25%). Late payment penalties start at 0.5% per month and also capped at 25%.
4. Last-Minute Tax Filing Tips for October Deadline
- Double-check your documents: Before submitting, ensure that all income, deductions, and credits are accurately reported.
- Don’t overlook potential deductions: Many filers miss out on deductions like medical expenses, charitable donations, and education-related credits.
- Use direct deposit for faster refunds: Opt for direct deposit to receive your refund more quickly and securely.
Exclusive Offer: Free Year-End Tax Planning Consultation
To help you maximize your savings as we head into the final months of 2024, Sapphire Tax Notary is offering a complimentary year-end tax planning consultation. Let us guide you through your financial decisions to make sure you’re on the right track.
Stay Connected with Sapphire Tax Notary
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Thank you for trusting Sapphire Tax Notary with your tax and financial needs. We’re here to help you navigate these important deadlines and finish the year strong!
Warm regards,
Shemea Broom
Owner, Sapphire Tax Notary
Phone: 205-235-2373
Email: mea@sapphiretaxnotary.com
P.S. Stay tuned for our November 2024 issue, where we’ll explore “Preparing for 2025: Tax Strategies and Holiday Spending Tips.”