2023 Tax Planning – Don’t Wait Until the End of the Year
With kids out of school, summer vacations and other commitments, it’s no surprise that taxes aren’t top of mind this time of year. This is actually a great time to give yourself time to think through your tax situation, and make adjustments well in advance of tax time. Here are just a few items to get the conversation started.
IRS Inflation Adjustments
The IRS announces inflation adjustments for many tax thresholds each year. Given how much inflation we’ve seen recently, the IRS’s adjustments for 2023 are significant. Consider how this may impact your tax bracket, retirement contributions, and more.
Life Changes
Major life events often don’t line up cleanly with tax deadlines. Consider how a marriage, divorce, birth or adoption of a child, retirement, or job change may affect your withholdings and overall tax situation.
Retirement Savings
The IRS inflation adjustments allow for diligent savers to save more than ever before for retirement, whether they’re contributing to an employer-sponsored plan or IRA.
Gifting
The annual gift exclusion was raised to $17,000 per person. This means that a married couple could gift up to $34,000 this year to each recipient, without triggering any concern about gift taxes. For those with substantial assets, taking advantage of the annual gift exclusion can be a powerful way to avoid gift and estate taxes.
Interested in going deeper on tax planning in 2023? Schreiber Accounting and Advisory can help with comprehensive tax planning and preparation services. Contact the firm for more information.
Material discussed is for informational purposes only. It is not to be interpreted as investment, tax, or legal advice. Individual situations vary, and this information should only be relied upon when coordinated with individual professional advice.