SMYRNA, Ga. — Filing your taxes may be the last thing on your mind with April still months away, but a metro Atlanta tax advisor said now is the time for you to take advantage of ways to lower what you owe Uncle Sam.
It's still 2023, but Adam Bateman with Moore Colson CPAs and Advisors is busy and already talking with clients about tax season.
“There are a lot of deductions that you're allowed to take only when they happen before December 31st," Bateman said.
Bateman's first suggestion has to do with your 401K retirement plan.
“The biggest thing is to make sure that the plan that you put in place, that the deductions have been taken out of your pay appropriately and that you're maximizing your 401K contributions," Bateman said.
Bateman said this is for two reasons. First, you're getting the pre-tax benefit of saving for retirement.
“The second is if your company has a matching contribution, you need to make sure that you're getting the full benefit of that matching that your company is going to do on your behalf because this is essentially free money for you as an employee with your company," Bateman said.
Bateman has another tip: Clean out your closets. You could get big tax benefits through your charitable contributions.
“Say you were going to make one right at the end of this year, and you're going to make another one in January. Well, if you make them both in December, you might be able to get yourself over that filing threshold for itemized deductions and get an actual additional benefit," Bateman said.
Bateman also recommends making charitable contributions of appreciated stock.
“It’s more beneficial to give them the actual security than it is to sell the security," Bateman said. "Recognize the game, and then give them the net proceeds. If you give them the security, you get it for the full fair market value.”
Finally, let your tax advisor know as soon as possible about major changes in your life, such as a new job or child.